When Volume Changes

question 79

Multiple Choice

When volume changes,

• A)total variable expenses change.
• B)total fixed expenses change.
• C)contribution margin per unit changes.
• D)unit variable costs change.

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Definitions:

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

Division A

A segment or branch of a company that operates independently with its own set of management and objectives but is still legally tied to the parent corporation.

Division B

Generally refers to a specific unit or section within a larger organization, allocated for managing a particular set of tasks or responsibilities.

CAPM

The Capital Asset Pricing Model (CAPM) is a financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.