What Determines the Difference Between a Variable and a Fixed

question 12

Multiple Choice

What determines the difference between a variable and a fixed cost?

• A)Whether the total cost changes when activity levels change.
• B)Whether the total cost is relevant to a particular decision.
• C)Whether the total cost can be traced to a specific cost object.
• D)Whether the total cost is related to manufacturing or nonmanufacturing activities.

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Definitions:

Glass Ceiling Effect

An invisible barrier limiting career advancement of women and members of visible minorities.

Stereotyping

The oversimplified and generalized perception or judgment of a group of people based on common traits or attributes.

Psychological Contract

An unwritten agreement that reflects the mutual beliefs, perceptions, and informal obligations between an employer and its employees.

Exchange Of Values

The process where parties trade goods, services, or intangible benefits, each providing something of value to the other.