Within a Relevant Range, the Amount of Variable Cost Per

question 29

Multiple Choice

Within a relevant range, the amount of variable cost per unit

• A)differs at each activity level.
• B)remains constant at each activity level.
• C)increases as activity increases.
• D)decreases as activity increases.

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Definitions:

Profit Margin

Profit margin is a financial ratio that measures the percentage of revenue remaining after all expenses have been deducted, indicating the efficiency of a company in generating profit.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Return on Assets

A financial ratio that measures the efficiency of a company in generating profit from its assets.

Basic Earnings Per Share

A financial metric that calculates the amount of net income earned per share of stock outstanding.