Montgomery Company Has a Variable Selling Cost A)1
B)2
C)3
D)4
E)5

question 22

Multiple Choice

Montgomery Company has a variable selling cost. If sales volume increases, how will the total variable cost and the variable cost per unit behave? $\begin{array} { | l | l | l | } \hline & \text { Total Variable Cost } & \underline { \text { Variable Cost Per Unit } } \\\hline 1 & \text { Increase } & \text { Increase } \\\hline 2 & \text { Increase } & \text { Remain constant } \\\hline 3 & \text { Increase } & \text { Decrease } \\\hline 4 & \text { Remain constant } & \text { Decrease } \\\hline 5 & \text { Decrease } & \text { Increase } \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of banks, and stability of the financial system.

Interest Rates

The amount charged, expressed as a percentage of principal, by lenders to borrowers for the use of money as a loan, influencing economic activity.

Unemployment Insurance

A government program that provides temporary financial assistance to unemployed workers who have lost their jobs through no fault of their own.

Contributory Program

A social welfare system that requires individuals to contribute through taxes or payments in order to be eligible for benefits or services.