Which of the Following Factors Would Be Relevant in Classifying

question 78

Multiple Choice

Which of the following factors would be relevant in classifying costs as fixed or variable in a specific decision situation?

• A)if the time horizon is short or long
• B)the relevant range of the next best alternative situation
• C)the mix of revenues
• D)the sales mix
• E)if the time horizon is shorter in another alternative

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Definitions:

Federal Income Tax

A tax levied by the U.S. federal government on an individual's or entity's annual income.

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, representing the tax rate applicable to the highest dollar of an individual's income.

Personal Income Tax

A tax that individuals pay on their income to the government, often levied at progressive rates where the tax rate increases as income increases.

Income

The money received by an individual or business in exchange for providing a good or service or through investing capital.