When Fixed Costs Are Included in the Cost of Goods

question 128

True/False

When fixed costs are included in the cost of goods sold, the gross margin percentage should increase and decrease with sales volume.

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Definitions:

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action, often contrasting with the action’s intended effects.

Endangered Species

Species of animals or plants that are at risk of extinction throughout all or a significant portion of their habitat.

Opportunity Cost

The trade-off of potential gains in alternate choices when one is chosen.

Environmental Legislation

Laws and regulations designed to protect the natural environment against pollution and harm, often by regulating emissions and industrial processes.