When the Variable Cost Per Unit Increases,the Contribution Margin on Each

question 227

True/False

When the variable cost per unit increases,the contribution margin on each unit decreases.

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Definitions:

Operating Cycle

The period of time between the acquisition of inventory by a company and the receipt of cash from accounts receivable from the sale of that inventory.

Inventory Period

The time it takes for a company to turn its inventory into sales.

Accounts Payable Period

The duration it takes for a company to pay off its supplier invoices.

Accounts Receivable Period

The typical period a firm takes to collect receivables from its clients.