Round-Tripping Is When

question 11

Multiple Choice

Round-tripping is when

• A) a selling company sells to a customer company with huge discounts.
• B) a selling company pretends to sell to a fictitious company with the intent of inflating revenues
• C) a selling company lends money to a customer company to increase assets.
• D) a selling company lends money to a customer company to be used to purchase goods from the selling company.

---

Definitions:

Variable Cost Element

A cost that varies directly with the level of production or sales volume, such as materials and direct labor.

Fixed Cost Element

The portion of total costs that does not change with the variation in activity level or production volume.

CVP Analysis

Cost-Volume-Profit Analysis, a tool used to determine how changes in costs and volume affect a company's operating income and net income.

Variable

An element, feature, or factor that is likely to vary or change in ways that can affect the outcome of research or experiments.