All Else Constant, as the Variable Cost Per Unit Increases

question 37

Multiple Choice

All else constant, as the variable cost per unit increases, the:

• A)contribution margin decreases.
• B)sensitivity to fixed costs decreases.
• C)degree of operating leverage decreases.
• D)operating cash flow increases.
• E)net profit increases.

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Definitions:

Psychosexual Stages

are part of Freud's theory, signifying successive phases in childhood development, each with a specific focus of libido (sexual drive).

Freud's

Refers to Sigmund Freud, the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Oral

Pertaining to the mouth, or in psychoanalytic terms, relating to the first stage of psychosexual development involving pleasures and frustrations associated with the mouth.

Anal

Relating to the anus. In a psychological context, it often refers to Freud's theory of psychosexual development during the anal stage.