Which of the Following Is a True Statement About Cost

question 32

Multiple Choice

Which of the following is a true statement about cost behaviors in incremental analysis?
1) Fixed costs will not change between alternatives.
2) Fixed costs may change between alternatives.
3) Variable costs will always change between alternatives.

• A) only 1
• B) only 2
• C) only 3
• D) both 2 and 3

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Definitions:

Cost Leadership

A strategic approach where a company positions itself as the provider of the lowest cost products or services in its industry.

Marketing Strategy

A marketing strategy is a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services.

Profitable Customer Relationships

The ongoing connections a business cultivates with individuals or other businesses that result in a mutually beneficial exchange, ideally leading to repeat business and increased profitability.

Value Map

A visual tool used to compare the value propositions of different products or services in the market, analyzing factors such as price, quality, and performance.