The Greater the Ratio of Variable Costs to Sales,the

question 18

Multiple Choice

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

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

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Definitions:

Mandible

The lower jawbone, which is the largest and strongest bone in the human face, crucial for biting and chewing.

Temporal Bone

A bone located at the sides and base of the skull that houses structures of the ear.

Greater Trochanter

A prominent bony protrusion on the proximal (upper) part of the femur (thigh bone) serving as a major site for muscle attachment.

Iliac Crest

The upper curved edge of the ilium, one of the bones forming the pelvis, often used as a landmark for medical procedures.