Select the Term from the List Provided That Best Matches

question 76

Short Answer

Select the term from the list provided that best matches each of the following descriptions.
A) A condition in which a percentage change in revenue will produce a proportionately larger percentage change in net income
B) A cost that changes in total in direct proportion to changes in volume
C) A factor that causes (or drives) changes in costs
D) Costs composed of both fixed and variable components
E) The difference between a company's sales revenue and its variable costs
F) The way a cost changes relative to change in a measure of activity
G) A cost that remains constant in total when volume changes
H) A company's cost mix or relative proportion of variable and fixed costs to total costs
-Variable cost

• A) A condition in which a percentage change in revenue will produce a proportionately larger percentage change in net income
• B) A cost that changes in total in direct proportion to changes in volume
• C) A factor that causes (or drives) changes in costs
• D) Costs composed of both fixed and variable components
• E) The difference between a company's sales revenue and its variable costs
• F) The way a cost changes relative to change in a measure of activity
• G) A cost that remains constant in total when volume changes
• H) A company's cost mix or relative proportion of variable and fixed costs to total costs
• -Variable cost

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares rather than cash, adjusting the ownership proportionately.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing party, often used in the accounting of share capital.

Capital in Excess of Par

The amount by which the proceeds from the issuance of shares exceed the par value of the shares, often recorded in the shareholders' equity section of the balance sheet.

Homemade Dividend

A strategy where investors create their own dividend policy by selling a portion of their portfolio.