level: Level 1
Questions and Answers List
level questions: Level 1
| Question | Answer |
|---|---|
| remain the same as production levels change. | Variable costs per unit will... |
| decrease as production increases. | TOTAL variable costs will... |
| likely increase by 15%. | If production increases by 15%, then total variable costs will... |
| increase as production decreases. | Fixed costs per unit will... |
| remain the same as production levels change. | TOTAL fixed costs will... |
| a fixed cost. | Straight-line depreciation is... |
| the number of units a company must sell to generate a ZERO PROFIT. | Breakeven Point |
| indicate a loss. | Sales below the breakeven point... |
| indicate an income. | Sales above the breakeven point... |
| under a variable costing income statement. | A DECREASE in inventory will cause a HIGHER operating income... |
| an absorption costing income statement. | If higher productions exceeds units sold, a higher income will result under... |