What Would Be the Balance of the Following Account If

question 24

Multiple Choice

What would be the balance of the following account if balanced on 15th January?
Besame Ltd

• A) £240 Credit
• B) £240Debit
• C) £390 Credit
• D) £390 Debit

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Definitions:

Variable Expenses

Variable expenses fluctuate in direct proportion to changes in activity level or volume, such as sales or production quantities.

Fixed Expenses

Expenses that do not change with the level of production or sales within a certain range and period, such as rent, salaries, and insurance.

Break-Even Sales

The amount of sales revenue needed to cover all fixed and variable costs, resulting in no profit or loss.

Variable Production Costs

Costs that fluctuate directly with the level of output, including materials, labor, and other expenses that vary with production volume.