As the Volume of Output Decreases

question 78

Multiple Choice

As the volume of output decreases:

• A) Fixed costs per unit will increase.
• B) Fixed costs per unit will decrease.
• C) Fixed costs per unit will not change.
• D) Fixed costs in total will decrease.

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Definitions:

Notes Receivables

These are written promises for amounts to be received by a business, typically including interest, evidence by a formal instrument.

Accounts Receivables

Refers to the amounts owed to a business by its customers for sales or services provided on credit.

Finance Charge

A fee representing the cost of credit or the cost of borrowing on accounts, including interest and other charges.

Finance Charge

The total cost of borrowing, including interest, fees, and any other charges associated with the extension of credit.