Which of the Following Statements Is True

question 33

Multiple Choice

Which of the following statements is true?

• A) Revenues remain constant, regardless of the level of business activity
• B) Variable costs remain constant, regardless of the level of business activity
• C) The ratio of fixed to variable costs is likely to decline as business activity increases
• D) The ratio of fixed to variable costs is likely to increase as business activity increases

Understand the concept and implications of fixed and variable costs in business operations.

Comprehend the significance of break-even analysis in financial and accounting contexts.

Grasp the real options in managerial decision-making, including the investment timing and the option to expand.

Interpret the degree of operating leverage and its impact on business financial performance.

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