If the Fixed Costs Relative to a Specific Product Increase

question 133

Multiple Choice

If the fixed costs relative to a specific product increase while the variable costs and sales price remain constant, the break-even point will:

• A) Increase
• B) Decrease
• C) Remain unchanged
• D) The answer cannot be determined from the information given

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Definitions:

General Knowledge

A broad range of facts, concepts, and information about various subjects that are not specialized but are known by many people.

Recognition

A measure of memory in which the person need only identify items previously learned, as on a multiple-choice test.

Recall

A measure of memory in which the person must retrieve information learned earlier, as on a fill-in-the-blank test.

Memory

The faculty by which the mind stores and remembers information.