Air Freight Has a High Variable-Cost-To-Fixed-Cost Ratio Because of the High

question 13

True/False

Air freight has a high variable-cost-to-fixed-cost ratio because of the high costs of operating a flight.

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Definitions:

Cash Basis

An accounting method where revenue and expenses are recorded only when cash is received or paid, respectively.

Pay Back

Refers to the time period required for an investment to generate cash flows or profits to cover its initial cost.

Accounting Break-even

The point at which total costs match total revenues, indicating that a business is neither making a profit nor a loss.

Net Present Value

The variance between the current worth of cash inflows and the current worth of cash outflows over a specific duration, employed to evaluate the profitability of an investment.