When a Mixed Cost Is Graphed,what Does the Slope of the Line

question 210

Multiple Choice

When a mixed cost is graphed,what does the slope of the line represent?

• A)the fixed cost per unit of output
• B)the total cost per unit
• C)the sales price per unit
• D)the variable cost per unit of the activity driver

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Definitions:

EBIT

Stands for Earnings Before Interest and Taxes, a measure of a firm's profitability that excludes interest and income tax expenses.

Cost of Goods Sold

The immediate financial outlays involved in the manufacture of goods a company sells, such as labor and material expenses.

Price-Earnings Ratio

A valuation metric that compares a company's share price to its earnings per share.

Market-to-Book Ratio

The market-to-book ratio compares a company's market value (or capitalization) to its book value of equity, indicating how valued a company is in comparison to its accounting values.