Which of the Following Amounts of a Flexible Budget Change

question 4

Multiple Choice

Which of the following amounts of a flexible budget change with changes in sales volume?

• A)selling price per unit
• B)total fixed costs
• C)variable expense per unit
• D)total contribution margin

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Definitions:

Absorption Costing

A method of costing that includes all manufacturing costs, both fixed and variable, in the cost of a product.

Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost price.

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.

Markup

The increment added to the acquisition cost of products to address company overheads and earn profit.