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What is the relationship between fixed costs and variable costs in break-even analysis?
  • a)
    Variable costs vary with changes in sales volume, while fixed costs remain constant.
  • b)
    Fixed costs vary with changes in sales volume, while variable costs remain constant.
  • c)
    Both fixed costs and variable costs remain constant regardless of sales volume.
  • d)
    Both fixed costs and variable costs vary with changes in sales volume.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the relationship between fixed costs and variable costs in bre...
In break-even analysis, there is a relationship between fixed costs and variable costs. Fixed costs, such as rent and salaries, remain constant regardless of sales volume. They do not change with the level of activity. On the other hand, variable costs, such as the cost of goods sold and commissions, vary in direct proportion to sales volume. As sales increase, variable costs also increase, and vice versa. Understanding this relationship is crucial for determining the break-even point and analyzing the impact of changes in sales volume on costs and profits.
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What is the relationship between fixed costs and variable costs in break-even analysis?a)Variable costs vary with changes in sales volume, while fixed costs remain constant.b)Fixed costs vary with changes in sales volume, while variable costs remain constant.c)Both fixed costs and variable costs remain constant regardless of sales volume.d)Both fixed costs and variable costs vary with changes in sales volume.Correct answer is option 'A'. Can you explain this answer?
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What is the relationship between fixed costs and variable costs in break-even analysis?a)Variable costs vary with changes in sales volume, while fixed costs remain constant.b)Fixed costs vary with changes in sales volume, while variable costs remain constant.c)Both fixed costs and variable costs remain constant regardless of sales volume.d)Both fixed costs and variable costs vary with changes in sales volume.Correct answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the relationship between fixed costs and variable costs in break-even analysis?a)Variable costs vary with changes in sales volume, while fixed costs remain constant.b)Fixed costs vary with changes in sales volume, while variable costs remain constant.c)Both fixed costs and variable costs remain constant regardless of sales volume.d)Both fixed costs and variable costs vary with changes in sales volume.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the relationship between fixed costs and variable costs in break-even analysis?a)Variable costs vary with changes in sales volume, while fixed costs remain constant.b)Fixed costs vary with changes in sales volume, while variable costs remain constant.c)Both fixed costs and variable costs remain constant regardless of sales volume.d)Both fixed costs and variable costs vary with changes in sales volume.Correct answer is option 'A'. Can you explain this answer?.
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