When Both Fixed and Variable Costs Go Down

question 135

Multiple Choice

When both fixed and variable costs go down,

• A)operating income goes down.
• B)operating income goes up.
• C)contribution margin goes down.
• D)revenue goes up.

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Definitions:

Denial

A psychological defense mechanism where an individual refuses to accept reality, truth, or facts.

Minimization

The strategy or action of reducing or keeping something to its smallest amount or degree.

Justification

The act of providing reasons or explanations for behaviors, decisions, or beliefs.

Eye Contact

Direct visual connection between two individuals, signifying various social and emotional meanings.