If Variable Costs Per Unit Decreased Because of a Decrease

question 164

Multiple Choice

If variable costs per unit decreased because of a decrease in utility rates, the break-even point would:

• A) decrease
• B) increase
• C) remain the same
• D) increase or decrease, depending upon the percentage increase in utility rates

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Definitions:

Customers Pay

This term refers to the action of clients or buyers giving money in exchange for goods or services.

Service

An intangible commodity that involves the provision of labor or expertise, rather than goods, for the benefit of a consumer.

Accounting Cycle

The sequence of procedures performed in accounting to process, record, and report financial transactions over a specific period.

Adjusted Trial Balance

An adjusted trial balance is a list of all the accounts of a company, including any adjustments, showing the final balances to be used for financial statements.