As the Volume of Output Increases

question 53

Multiple Choice

As the volume of output increases:

• A)Variable costs per unit will increase.
• B)Variable costs per unit will decrease.
• C)Variable costs per unit will not change.
• D)Variable costs in total will decrease.

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Definitions:

Interest-Bearing Note

A debt instrument in which the issuer pays the holder interest at a specified rate over the term of the note.

Accrued Interest

Interest that has been incurred but not yet paid or received in cash.

Adjusting Entry

An accounting record made to adjust income or expenditure in accounts to reflect the accrual basis of accounting properly.