When the Total Fixed Costs Decreases,the Breakeven Point ________

question 97

Multiple Choice

When the total fixed costs decreases,the breakeven point ________.

• A) increases
• B) decreases
• C) remains the same
• D) increases proportionately

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making or selling goods and services, showing profitability.

Activity Base

This term is associated with cost accounting and refers to a measure of activity that is used as a basis for allocating costs to cost objects.

Number of Miles

The number of miles refers to the total distance measured in miles, often used in contexts such as travel, transportation, and delivery services.

Controllable Revenues

Income over which a business or manager has direct control, often affected by decisions on pricing and marketing.