The Relative Proportion of Variable, Fixed, and Mixed Costs in a Firm

question 30

Multiple Choice

The relative proportion of variable, fixed, and mixed costs in a firm is known as the firm's

• A)contribution margin.
• B)cost structure.
• C)product mix.
• D)relevant range.

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Definitions:

Capitalized

Costs that are added to the cost basis of an asset on the balance sheet rather than being expensed immediately.

Intangibles Purchase

The act of acquiring non-physical assets such as licenses, patents, or copyrights that provide the purchaser with exclusive rights or significant value.

R&D Expense

Costs associated with the research and development activities of a company, aimed at the creation of new products or enhancement of existing products.

IFRS

International Financial Reporting Standards; a set of global accounting standards that provide guidance on how to report financial events.