Given a Constant Contribution Margin Per Unit and Constant Fixed

question 99

Multiple Choice

Given a constant contribution margin per unit and constant fixed costs, the period-to-period change in operating income under variable costing is driven solely by ________.

• A) changes in the quantity of units actually sold
• B) changes in the quantity of units produced
• C) changes in ending inventory
• D) changes in sales price per unit

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Definitions:

Super-Variable Costing

No real financial accounting term aligns exactly with "Super-Variable Costing"; may be a mistaken or niche term.

Variable Costing

An accounting method that considers only variable costs in determining the cost of goods sold and evaluates profitability.

Direct Labor Cost

The total cost of wages paid to workers directly involved in the manufacturing or production of goods or services.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period, highlighting its profitability.