Which of the Following Always Has a Direct Cause-Effect Relationship $\begin{array}{llcc} \underline{ \text { Predictor } }& \underline{ \text { Cost driver} }\\\end{array}$

question 104

Multiple Choice

Which of the following always has a direct cause-effect relationship to a cost? $\begin{array}{llcc} \underline{ \text { Predictor } }& \underline{ \text { Cost driver} }\\\end{array}$

• A) yes yes
• B) yes no
• C) no yes
• D) no no

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Definitions:

Break-Even Point

The point at which total revenues equal total costs, and the business is neither making a profit nor incurring a loss.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term.

Sales Ratio

A metric that compares a particular figure or cost to the total sales, providing insight into various financial aspects of a business.

Variable Costs

Expenditures that fluctuate based on the volume of output or services provided by an enterprise.