Knowledge about the behavior pattern of a cost is important to understanding the effect on net income of a change in sales volume because as sales volume changes:
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
Q4: Managerial accounting, as opposed to financial accounting,
Q9: Management accounting is:
A) a highly technical subject
Q10: Which of the following activities is not
Q11: Simplifying assumptions made when using cost behavior
Q11: Managerial accounting, as compared to financial accounting:
A)must
Q13: Performance analysis in the planning and control
Q15: Which of the following is another term
Q16: As the level of activity increases:
A)fixed cost
Q17: Expressing fixed costs on a per unit
Q19: When the cost behavior pattern has been
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