All of the Following Will Make the Break-Even Point Increase,other

question 137

Multiple Choice

All of the following will make the break-even point increase,other things equal,except:

• A) fixed costs increase.
• B) the sales price per unit is decreased due to competition.
• C) variable costs increase due to higher direct labor cost.
• D) the number of units sold for the year decreased.

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Definitions:

Cost of Goods Sold

The financial outlays directly connected with creating the products a company sells, which entail materials and labor.

Purchases Returns and Allowances

Transactions involving the return of goods to suppliers or receiving discounts due to issues like damaged goods, leading to a reduction in purchase costs.

Merchandise Inventory

The goods a company holds in stock with the intention of selling them as part of its business operations.

Freight-In

Freight-in refers to the shipping cost associated with getting goods delivered from suppliers to the buyer, often included in the inventory cost of purchased goods.