What Would Be the Result of a Decrease in the Sales

question 96

Multiple Choice

What would be the result of a decrease in the sales price in the basic cost-volume-profit model?

• A)The decrease would require a recomputation of the gross profit per unit.
• B)The decrease would be offset by an increase in unit costs.
• C)The decrease would decrease the break-even volume.
• D)The decrease would increase the break-even volume.

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Definitions:

Time-Driven

An approach that bases analysis, activities, or costing on the amount of time required to complete certain tasks or processes.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their consumption of resources.

Preparing Deliveries

The process involved in getting goods ready for shipment to customers, including packaging, labeling, and coordinating logistics.

Time-Driven

Refers to actions or processes that are triggered or scheduled based on specific time conditions.