Cost a Is a Fixed Cost, While B Is a Variable

question 96

Multiple Choice

Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output has decreased. In terms of cost per unit of output, we would expect that:

• A) cost A has remained unchanged.
• B) cost B has decreased.
• C) cost A has decreased.
• D) cost B has remained unchanged.

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Definitions:

Tariffs

Taxes imposed by a government on goods and services imported from other countries, often used to protect domestic industries.

United States

A country located in North America, known for its large economy and diverse population.

Price

The payment sum forecasted, compelled, or allocated for a specific transaction.

Import

The act of bringing goods or services into a country from abroad for the purpose of trade or sale.