When Volume Changes

question 156

Multiple Choice

When volume changes

• A)total variable expenses change.
• B)total fixed expenses change.
• C)contribution margin per unit changes.
• D)both total variable expenses change and contribution margin per

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Definitions:

Fixed Costs

Costs that do not change with the amount of goods or services produced, such as rent, salaries, and insurance premiums.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Sales Price

The total cost that a consumer incurs to buy a product or service from a merchant.

Fixed Costs

Expenses that do not change with variations in the level of output or sales, such as rent, salaries, and insurance.