Which of the Following Best Describe the Term Fixed Costs

question 308

Multiple Choice

Which of the following best describe the term fixed costs.

• A) The percentage change in operating cash flow relative to the percentage change in quantity sold.
• B) The sales level that results in a zero NPV.
• C) Costs that do not change when the quantity of output changes during a particular time period.
• D) The possibility that errors in projected cash flows lead to incorrect decisions.
• E) Opportunities that managers can exploit if certain things happen in the future.

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Definitions:

Cross-functional Team

A group of people with different functional expertise working toward a common goal, often involving members from various departments within an organization.

Friendship Groups

Informal social relationships that form within the workplace or any organizational setting.

Functional Chimneys Problem

A lack of communication across functions.

Cross-functional Teams

Groups composed of members from different departments or areas of expertise, working together towards a common goal.