Increasing C While Holding N Constant Decreases the ________ Risk

question 35

Short Answer

Increasing c while holding n constant decreases the ________ risk and increases the ________ risk.

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Definitions:

Period Cost

Costs that are not directly tied to the production process and are expensed in the period they are incurred.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking a different action.

Variable Cost

Costs that directly correspond with the degree of production or output levels.

Period Costs

Costs that are not directly tied to production and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.