Which One of the Following Statements Is Not

question 165

Multiple Choice

Which one of the following statements is not ?

• A) Total fixed costs remain the same regardless of volume within the relevant range.
• B) Total variable costs change with volume.
• C) Total variable costs decrease as the volume increases.
• D) Fixed costs per unit increase as the volume decreases.
• E) Variable costs per unit remain the same regardless of the volume.

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Definitions:

Income Statement

An income statement is a financial document that summarizes a company's revenues, expenses, and profits over a specific period, showing its financial performance.

Selling Price

The amount charged to the customer for a product or service, determining the revenue generated from sales.

Net Operating Income

A company's revenue minus operating expenses, not including taxes and interest.

Sales Volume

The quantity of units sold within a specified period, crucial for analyzing a company's performance and planning production.