Because Fixed Costs Generally Do Not Change in the Short

question 4

Multiple Choice

Because fixed costs generally do not change in the short term:

• A)CVP is not appropriate if fixed costs are low.
• B)They are generally not included as a component in CVP analysis.
• C)Decreasing contribution margin increases profit by an identical amount.
• D)Increasing contribution margin increases profit by an identical amount.
• E)None of the above.

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Definitions:

Goal Setting

Determining goals that are clear, quantifiable, feasible, pertinent, and have a defined timeline.

Relevant Goals

Objectives that are pertinent and directly relate to the desired outcome or mission of an individual or organization.

Goal Commitment

The determination and persistence of an individual or group to achieve a set of objectives or targets.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to perform or act based on the expected outcomes and the value they place on those outcomes.