Exhibit 21-6 the Graph Below Illustrates Various Cost Behavior Patterns

question 6

Multiple Choice

Exhibit 21-6 The graph below illustrates various cost behavior patterns in XYZ Company.

-Refer to Exhibit 21-6. In the graph above, total fixed costs are represented by:

• A) Line A
• B) Line B
• C) Area C
• D) Area D

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Definitions:

Unrealised Profits

Profits that have been recorded on paper through accounting but have not yet been actualized through cash transactions.

NCI Allocation

The process of distributing the non-controlling interest’s share of equity in the consolidated financial statements.

Upstream Transactions

Transactions where a subsidiary sells goods or services to its parent company.

Unrealised Intragroup Profit

Profit on transactions within a group of companies that has not been realized outside the group, affecting consolidated financial statements.