Carol Classifies Her Accounts Based on Sales Revenue

question 116

Short Answer

Carol classifies her accounts based on sales revenue. Carol is using ___________ analysis to classify her accounts.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity, such as materials and labor directly involved in manufacturing.

Lawn-mowing

The act of cutting the grass of a lawn to maintain its appearance and health.

Perfectly Competitive

A market structure where there are many buyers and sellers, all of whom have negligible impact on the market price.

Marginal Cost

The increment in total spending due to the manufacture of one more unit of a product or service.