An Increase in Fixed Operating and Financial Cost Results in an Increase

question 97

True/False

An increase in fixed operating and financial cost results in an increase in risk, since the firm will have to achieve a higher level of sales just to break even.

Understand the importance of task and maintenance activities within teams.

Identify behaviors that contribute to the emotional and social health of a team.

Recognize the characteristics and examples of maintenance activities.

Comprehend different communication network structures and their impact on team dynamics.

---

Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, and cost of goods sold is calculated at the end of an accounting period.

Ending Inventory

The worth of products ready to be sold at the closure of a financial period, determined by adding the initial inventory to purchases and subtracting the cost of goods sold.

Cost of Goods Sold

The immediate expenses linked to the creation of products sold by a business, encompassing costs for materials, workforce, and operational overheads.

Cost of Goods Available

The total cost of inventory available for sale during a specific period, calculated as the sum of beginning inventory and purchases minus ending inventory.