Which of the Following Statements Is TRUE If the Variable

question 23

Multiple Choice

Which of the following statements is TRUE if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

• A)Breakeven point in units increases.
• B)Breakeven point in units decreases.
• C)Breakeven point in units remains the same.
• D)Contribution margin ratio increases.

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Definitions:

Aggregation

The process of combining multiple pieces or data points together to form a whole or summary measure.

Incremental Validation

A process of progressively verifying the steps or components of a model, system, or theory to ensure its accuracy or validity at each stage.

Null-hypothesis Significance Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition holds true for the entire population.

P-value

A statistical measure that helps scientists determine the strength of their evidence; it indicates the probability of observing their data, or something more extreme, if the null hypothesis were true.