Which of the Following Statements Is True If the Variable

question 148

Multiple Choice

Which of the following statements is true if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

• A) The breakeven point decreases.
• B) The contribution margin increases.
• C) The breakeven point remains the same.
• D) The breakeven point increases.

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Definitions:

Management Accounting

The method of creating management reports and financial statements that offer precise and current financial and statistical data needed by managers for making daily and short-term choices.

Analytical Accounting

The practice of using financial and non-financial data to uncover trends and insights for business decision-making.

Planning

The process of making strategic decisions and setting objectives and goals for future organizational performance.

Goals And Objectives

The targets and specific outcomes that individuals or organizations aim to achieve through their actions and strategies.