The Break-Even Point in Unit Sales Increases When Variable Expenses

question 68

Multiple Choice

The break-even point in unit sales increases when variable expenses:

• A)increase and the selling price remains unchanged.
• B)decrease and the selling price remains unchanged.
• C)decrease and the selling price increases.
• D)remain unchanged and the selling price increases.

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Definitions:

Salaries And Wages Payable

Liabilities owed to employees for work performed that are unpaid at the end of a reporting period.

Balance Sheet

A financial summary that captures the essence of a company’s assets, debts, and the share of equity belonging to investors at a given time.

Incurred

To suffer or become subject to an obligation, usually a cost or expense, as a result of one's actions or the operation of a business.

Accrual Accounting

A financial recording technique that logs income and expenditures at the time they are accrued or incurred, irrespective of the actual cash flow timing.