As Volume Changes, Which of the Following Items Also Change

question 64

Multiple Choice

As volume changes, which of the following items also change?

• A)Total sales revenue
• B)Variable cost per unit, total contribution margin
• C)Total fixed costs, contribution margin per unit
• D)Total sales revenue, total variable costs, and total contribution margin

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Definitions:

Receivables Basis

An accounting method that recognizes revenue when related receivables are actually or constructively received.

Allowance Account

A contra account related to accounts receivable that represents the estimate of receivables that are likely to be uncollectible.

Allowance Account

A contra-asset account used to estimate and offset losses from potentially uncollectible accounts receivable.

Debit Balance

An accounting entry that represents a situation where debits exceed credits in an account, indicative of assets or expenses.