Prudence Company Incurs Both Fixed and Variable Production Costs

question 104

Multiple Choice

Prudence Company incurs both fixed and variable production costs.Assuming that production is within the relevant range,if volume goes up by 28%,then the total fixed costs would ________.

• A)increase by 28%
• B)remain the same
• C)increase by an amount less than 28%
• D)decrease by 28%

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Definitions:

Daily Cash Flow

A financial report showing the net amount of cash that is received or dispersed by a business within a given day.

Receipts

Documents that acknowledge the receipt of goods or the receipt of a transaction.

Fraudulent E-Mails

Deceptive emails sent with the intention of tricking recipients into parting with their money, personal details, or both.

Wire Fraud

A fraudulent scheme to intentionally deprive another of property or honest services via telecommunications or the internet.