When the Level of Fixed Costs Is Decreased,the Break-Even Level

question 90

Multiple Choice

When the level of fixed costs is decreased,the break-even level of revenues:

• A) will automatically decrease.
• B) will automatically increase.
• C) may or may not change, depending on variable costs.
• D) will remain unchanged as long as depreciation remains constant.

Understand different strategies and actions to deal with burnout.

Identify and analyze responses of various organizational levels to change.

Classify changes in the workplace according to their types (technology, people, tasks, structure).

Recognize sources of job stress in the modern work environment.

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Definitions:

Fixed Costs

Costs that do not change with the level of goods or services produced by a business.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials or production costs.

Variable Costs

Costs that vary directly with the level of production or output.

Financial Performance

A measure of how well a company can use assets to generate earnings, often evaluated through financial statements and ratios.