If Sales Volume Increases and All Other Factors Remain Constant

question 317

Multiple Choice

If sales volume increases and all other factors remain constant, then the:

• A) contribution margin ratio will increase.
• B) break-even point will decrease.
• C) margin of safety will increase.
• D) net operating income will decrease.

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Definitions:

Team-Based Incentive Plan

A reward system where workers are compensated based on the performance and achievements of their group or team.

Point System Job Evaluation

A quantitative method of determining the value of a job in relation to other jobs within an organization by scoring it on various factors.

Allocating Points

The process of distributing or assigning points based on certain criteria, often used in scoring systems, evaluations, or resource management.

Individual Incentive Plan

Compensation strategy designed to reward employees based on their individual performance achievements.