Costs That Remain the Same Over a Wide Range of Activity

question 24

Multiple Choice

Costs that remain the same over a wide range of activity, but jump to a different amount outside that range, are known as:

• A) step-fixed costs.
• B) step-variable costs.
• C) semivariable costs.
• D) curvilinear costs.
• E) mixed costs.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to check the equality of debits and credits and prepare financial statements.

Revenue Accounts

Accounts in financial accounting that represent the income generated by a company from its operational activities.

Expense Accounts

These are ledger accounts that track the costs incurred by a company in the course of doing business, excluding capital expenditures.

Adjusting Entries

Journal entries made at the end of an accounting period to update income and expense accounts and ensure compliance with the accrual method of accounting.