Complete the Statement,using the Following Terms: Increases,decreases,or Have No Effect

question 275

Essay

Complete the statement,using the following terms: increases,decreases,or have no effect on.
Decreases in fixed costs ________ contribution margin per unit and ________ the breakeven point.

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Definitions:

Actual Costs

Actual costs are the genuine expenditures incurred by a company, as opposed to estimated costs, during a given period for production, services, or other activities.

Reasonableness

A test or criterion to evaluate whether the assumptions or outputs of a financial model or decision are logical and align with real-world expectations.

Standard Costs

Predetermined costs for the production of goods or services, used as benchmarks against which actual costs are compared.

Normal Conditions

Usual or expected conditions under which a company operates, reflecting a standard or average level of activity.