Assume There Is a Reduction in the Selling Price and All

question 168

Multiple Choice

Assume there is a reduction in the selling price and all other CVP parameters remain constant.This change will:

• A)reduce fixed costs.
• B)reduce operating profit.
• C)increase variable costs.
• D)increase contribution margin.

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Definitions:

Client-Based

A focus or approach that prioritizes the needs, preferences, and satisfaction of clients or customers in service or product design and delivery.

Global Organizations

are businesses or enterprises that operate in multiple countries around the world, facing challenges and opportunities from diverse cultures, legal systems, and market dynamics.

Team-Based Organizational Structure

An organizational layout where tasks and responsibilities are allocated to groups rather than individuals, fostering collaboration.

Flat Organizational Hierarchy

is a structure where there are few or no levels of middle management between staff and executives, often leading to faster decision-making and increased flexibility.