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Which One of the Following Statements Is Not Correct

question 120

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Which one of the following statements is not correct?


Definitions:

Variable Cost Ratio

The proportion of variable costs to sales, showing the impact of production volume on total costs.

Break-Even Point

The point at which total cost and total revenue are equal, meaning no net loss or gain, and one has "broken even."

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors hold true.

Contribution Margin

The difference between sales revenue and variable costs, measuring the ability of a business to cover its fixed costs.

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