The Asymmetrical Change in Costs When There Is a Decrease

question 234

Multiple Choice

The asymmetrical change in costs when there is a decrease in the volume of activity is called ________.

• A) cost stickiness
• B) contribution costs
• C) curvilinear costs
• D) cost adhering

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Definitions:

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period, excluding transactions with owners in their capacity as owners.

Net Sales

The revenue generated from goods or services sold by a company after returns, allowances for damaged or missing goods, and discounts are subtracted.

Operating Expenses

Incurred expenses not directly tied to the production of goods or services, such as administrative and sales expenses, that are necessary for running a business.

Depreciation

The method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.