Fixed Cost Per Unit

question 49

Multiple Choice

Fixed cost per unit:

• A) decreases as production volume decreases.
• B) is not affected by changes in the production volume.
• C) decreases as production volume increases.
• D) increases as production volume increases.

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Definitions:

Net Income

Net income is the total earnings of a company after deducting all expenses, taxes, and losses, indicating the company's profitability over a specific period.

Ending Inventory

The value of the goods available for sale at the end of an accounting period.

FOB Destination

Freight terms in which the seller pays the transportation costs from the shipping point to the final destination.

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue.