Expenses That Do Not Change in Value as Sales Volume

question 29

Multiple Choice

Expenses that do not change in value as sales volume rise or fall are called _____.

• A) variable expenses
• B) fixed expenses
• C) operating expenses
• D) miscellaneous expenses

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Definitions:

Salaries Increase

A salaries increase refers to the rise in the amount of money paid to employees for their work, often as a result of negotiations, performance evaluations, or inflation adjustments.

Economies of Scale

The cost advantage that arises with increased output of a product, where costs per unit decrease due to efficiencies gained from larger scale operations.

Long-Run Average Cost Curve

A curve showing the lowest possible cost at which a firm can produce any given level of output in the long run when all inputs are variable.

Downward Sloping

Describes a line or curve on a graph that shows a decrease in value as it moves from left to right, often used in economics to describe how changes in price affect demand.