Case 3 Matthew Has His New Computer System in Place

question 31

Multiple Choice

Case 3 Matthew has his new computer system in place and is ready to have an Internet connection. He is overwhelmed by the variety of choices for home Internet connections. For instance, he could choose to connect using an existing telephone line or dial-up connection. He could also use a cable modem, ISDN (Integrated Services Digital Network) , DSL (Digital Subscriber Line) , or satellite Internet service. Which of the Internet connections is always-on and does not require proximity to a telephone switching station?

• A) cable modem
• B) dial-up
• C) DSL (Digital Subscriber Line)
• D) ISDN (Integrated Services Digital Network)

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Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Unit Selling Price

The amount for which a unit of product is sold, not including any discounts or allowances.

Variable Cost Method

An accounting approach where costs that vary directly with the level of production are allocated to products, influencing the cost of goods sold and inventory valuation.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, indicating the amount contributing towards covering fixed costs and generating profit.