Examlex
In contrast to a variable cost
A)The total amount of a fixed cost does not change with activity level.
B)The total amount of a fixed cost increases as activity increases.
C)The per unit amount of a fixed cost does not change with activity level.
D)The per unit amount of a fixed cost increases as activity increases.
Forward Contract
A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the time of the contract.
Net Method
is an accounting method for recording purchases where the purchase is recorded at net of any trade discounts received.
Profit Test
A financial analysis conducted to determine the profitability or financial viability of a project, business, or product.
Reportable Segments
Identifiable business units within a corporation that are significantly engaging in business activities, generating revenues, and incurring expenses.
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