If Fixed Costs Rise While Other Variables Stay Constant

question 93

Multiple Choice

If fixed costs rise while other variables stay constant

• A) the break-even point rises.
• B) degree of operating leverage increases.
• C) total profit declines.
• D) all of the other answers are correct

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Definitions:

Central Authority

The main governing body or agency in a political or administrative system responsible for overseeing implementation of certain rules or policies.

Universal Standards

Generally accepted principles or criteria that apply globally across industries, cultures, or systems.

Ethics

The branch of philosophy that deals with questions about morality, guiding the principles of right and wrong in human conduct.

Television Test

An ethical guideline suggesting that one's actions should be considered as if they were to be broadcast on television.