Reducing Reliance on Human Workers and Instead Investing Heavily in Computers

question 74

Multiple Choice

Reducing reliance on human workers and instead investing heavily in computers and online technology will

• A) reduce fixed costs and increase variable costs.
• B) reduce variable costs and increase fixed costs.
• C) have no effect on the relative proportion of fixed and variable costs.
• D) make the company less susceptible to economic swings.

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Definitions:

Strict Liability

Liability in which responsibility for damages is imposed regardless of the existence of negligence. Also called liability without fault.

Causa Mortis

Causa mortis, or in contemplation of death, refers to gifts or actions taken by an individual who believes their death is imminent.

Immediate Death

The rapid loss of life following an event or condition, without a prolonged period of illness or decline.

Gift Causa Mortis

A gift that is made in contemplation of one’s immediate death.