Per-Unit Fixed Costs

question 127

Multiple Choice

Per-unit fixed costs

• A) can be misleading and lead to poor decisions.
• B) stay the same as output changes.
• C) decrease as output decreases.
• D) increase as output increases.

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Definitions:

Closing Journal Entries

The entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts and prepare the company's books for the next period.

Adjusting Journal Entries

Entries made in the accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Journal Entries

Records of financial transactions in the accounting system, typically involving a debit to one account and a corresponding credit to another account.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.