If Variable Costs Go Up, and All Other Factors Remain

question 104

True/False

If variable costs go up, and all other factors remain the same, the business will have to sell more units to break even.

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Definitions:

Fluid Ounces

A unit of volume used primarily in the United States to measure liquids, equivalent to approximately 29.57 ml.

Production Process

The series of steps involved in transforming raw materials into finished goods or services.

Overhead Account

An account used to record the indirect costs of a business, which are not directly attributable to a specific product or service.

Overabsorbed Overhead

The amount of overhead applied is greater than actual overhead cost incurred.