In a Graphic Depiction of Accounting Break-Even Analysis,the Larger the Slope

question 37

Multiple Choice

In a graphic depiction of accounting break-even analysis,the larger the slope of the total cost line,the:

• A) higher the level of fixed costs.
• B) higher the level of total revenue.
• C) higher the number of units sold.
• D) higher the percentage of variable costs.

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Definitions:

Payment of Account

The process of settling an amount owed to a creditor or vendor, often referred to as making a payment on an account.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable within a period.

Days' Sales in Receivables

A financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Industry Average Turnover

A measure comparing a company's sales or revenues relative to the average of its industry, indicating how efficiently a company is utilizing its assets.