Which of the Following Correctly Describes Fixed and Variable Cost

question 110

Multiple Choice

Which of the following correctly describes fixed and variable cost behavior as total volume increases?

• A)Unit fixed costs stay the same and unit variable costs increase.
• B)Total fixed costs stay the same and total variable costs increase.
• C)Unit fixed costs decrease and total variable costs decrease.
• D)Unit fixed costs decrease and unit variable costs decrease.

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Definitions:

Culture

A complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by humans as members of society.

Environmental Limitations

Natural or human-made conditions that restrict or shape the growth, survival, and distribution of organisms and the development of ecosystems.

Leveling Mechanisms

Social practices that ensure equality within a society by diminishing differences in wealth, power, and status.

Conspicuous Consumption

The spending of money on and the acquisition of luxury goods and services to publicly display economic power and social status.