A Cost That Remains the Same in Total Even When

question 6

Multiple Choice

A cost that remains the same in total even when volume of activity varies is a:

• A) Fixed cost.
• B) Curvilinear cost.
• C) Variable cost.
• D) Step-wise variable cost.
• E) Standard cost.

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Definitions:

General Journal

A ledger where double-entry accounting transactions are initially recorded, including details such as date, accounts affected, and amounts.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, used to prepare financial statements.

Inventory

The total amount of goods and materials a business holds for the purpose of resale or production.

Balance Sheet Column

Part of a financial statement that displays the company's assets, liabilities, and shareholders' equity at a specific point in time.