All Else Constant,as the Variable Cost Per Unit Increases,the

question 47

Multiple Choice

All else constant,as the variable cost per unit increases,the

• A)net profit increases.
• B)contribution margin decreases.
• C)sensitivity to fixed costs decreases.
• D)operating cash flow increases.
• E)financial breakeven point decreases.

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Definitions:

Going Concern Assumption

An accounting principle that assumes a company will continue to operate and remain solvent for the foreseeable future, affecting its financial reporting.

Operating Indefinitely

A business condition where it is expected that the company will continue its operations without a foreseeable end.

Future Benefits

Expected economic advantages gained from current investments, actions, or decisions.

Business

An organization or enterprise engaged in commercial, industrial, or professional activities with the aim of generating profits.