Which One of the Following Statements About Costs Is Correct

question 130

Multiple Choice

Which one of the following statements about costs is correct?

• A) Total costs will decrease as the variable cost per unit increases, all else held constant.
• B) A decrease in total fixed costs will increase the net present value of a project, all else held constant.
• C) An increase in the variable cost per unit will increase the contribution margin, all else held constant.
• D) Total costs will be greater under the best-case scenario than under the base-case scenario.
• E) The higher the total costs, the larger the net present value of a project.

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Definitions:

Leptin Levels

Concentrations of leptin, a hormone involved in regulating energy balance and appetite.

Basal Metabolic Rate

The number of calories required to keep your body functioning at rest, also known as BMR.

Set Point

A theory suggesting that an individual's body weight, or other physiological markers, are regulated around a specific value or range by the body's homeostatic mechanisms.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women.