Fixed Costs

question 53

Multiple Choice

Fixed costs

• A)Increase with the level of production in the short run.
• B)Can be altered in the short run but not in the long run.
• C)Increase as we move from the short run to the long run.
• D)Are constant in the short run.

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Definitions:

Cost Drivers

Factors that cause the costs of an activity to go up or down, like machine-hours or labor-hours, affecting the total cost of production.

Service Costs Accuracy

The precision with which the costs associated with delivering a service are measured and allocated.

Professional Services

Specialized services offered by trained professionals in various fields, such as legal, accounting, consulting, and medical services.

Service Shops

Businesses that provide intangible products, such as maintenance or repair services, to their customers.