If at a Given Volume Total Costs and Fixed Costs

question 9

Multiple Choice

If at a given volume total costs and fixed costs are known, the variable costs per unit may be computed as follows:

• A) (total costs - fixed costs)/unit volume
• B) (total costs/unit volume) - fixed costs
• C) (total costs * unit volume) - (fixed costs/unit volume)
• D) total costs - (fixed costs/unit volume)

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Definitions:

Net Price

The final cost of a product or service once all discounts, rebates, and promotions have been applied.

Complement Method

A mathematical technique used to simplify certain types of calculations, often by subtracting a number from a base value like 10 or 100.

Equivalent Single Discount

A method used in accounting to consolidate multiple trade discounts into one single discount, simplifying the calculation process.

Discount Date

The specified date by which a payment can be made at a reduced rate or a debt settled to avail a discount.