Knowing the behavior pattern of a cost is important to determine the effect on net income of a change in sales volume because as sales volume increases or decreases:
A) net income will change proportionately.
B) the effect on net income will depend on the behavior pattern of various costs.
C) fixed costs will rise proportionately.
D) variable costs will not change.
Correct Answer:
Verified
Q5: Activities included in a generally accepted definition
Q6: Simplifying assumptions identified for the use of
Q7: Management accounting:
A)is a highly technical subject that
Q8: Cost behavior refers to:
A)costs that are both
Q9: As the total volume of activity changes:
A)the
Q11: Managerial accounting, as compared to financial accounting:
A)must
Q12: The formula for expressing the total of
Q13: Which of the following statements does not
Q14: Managerial accounting supports the management process least
Q15: When using a cost formula to determine
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