In Cost-Volume Analysis, Costs That Vary Directly with Volume of Output

question 6

True/False

In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels.

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Definitions:

Vouchers Payable

An accounting term that refers to accounts payable obligations for which vouchers have been created but not yet paid.

Unpaid Voucher File

A file or record keeping system that tracks invoices and vouchers that have not yet been paid by the company.

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.

Vouchers Payable

Liabilities or debts owed by a company for purchases made on credit, documented by vouchers.