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Question TRUE FALSE Total variable costs change with activity Total fixed costs change with activity Mixed costs comprise fixed costs, variable costs, and opportunity costs
Question TRUE FALSE Total variable costs change with activity Total fixed costs change with activity Mixed costs comprise fixed costs, variable costs, and opportunity costs Fixed costs per unit decrease with increases in activity Variable costs per unit remain constant with changes in activity Contribution margin = Revenue - Fixed costs Contribution margin is the amount available after covering variable costs The greater the contribution margin, the greater a company's ability to cover its fixed costs In the formula: 'Y = mX + C', 'm' represents the change in fixed costs over time The relevant range is a time period over which variable and fixed costs remain constant
| Question | TRUE | FALSE |
| Total variable costs change with activity | ||
| Total fixed costs change with activity | ||
| Mixed costs comprise fixed costs, variable costs, and opportunity costs | ||
| Fixed costs per unit decrease with increases in activity | ||
| Variable costs per unit remain constant with changes in activity | ||
| Contribution margin = Revenue - Fixed costs | ||
| Contribution margin is the amount available after covering variable costs | ||
| The greater the contribution margin, the greater a company's ability to cover its fixed costs | ||
| In the formula: 'Y = mX + C', 'm' represents the change in fixed costs over time | ||
| The relevant range is a time period over which variable and fixed costs remain constant |
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
