The Greater the Ratio of Variable Costs to Sales, The

question 70

Multiple Choice

The greater the ratio of variable costs to sales, the:

• A)More each additional sale contributes to coverage of fixed costs
• B)Lower the level of profitability
• C)More units must be sold to cover fixed charges
• D)Lower the benefit of conducting a sensitivity analysis

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Definitions:

Citric Acid Cycle

A sequence of chemical reactions used by all aerobic organisms to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins.

GDP

Stands for Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.

Phosphorylated

Describes a molecule that has undergone phosphorylation, the addition of a phosphate group, often modifying its function or activity.

Glycolysis

The first step in cellular respiration, a pathway that converts glucose into pyruvate, generating ATP and NADH.