All Else Constant,as the Variable Cost Per Unit for a Project

question 24

Multiple Choice

All else constant,as the variable cost per unit for a project increases,the:

• A)contribution margin decreases.
• B)sensitivity to fixed costs decreases.
• C)project's net present value increases.
• D)accounting break-even point decreases.
• E)net profit increases.

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Definitions:

Numerically Controlled

Pertaining to machines or processes that are operated by precise instructions coded in the form of numbers.

Simple Rate

Refers to a basic or straightforward percentage that does not involve compounding over time, typically in finance.

Salvage Value

Salvage value is the estimated residual value of an asset after it has reached the end of its useful life and is no longer useful for its original purpose.

Payback Period

The period of time needed to recover the initial cost of an investment.