Fixed Costs Are Costs That

question 58

Multiple Choice

Fixed costs are costs that:

• A) vary directly with changes in activity.
• B) vary inversely with changes in activity.
• C) remain constant on a per-unit basis.
• D) remain constant as activity changes.
• E) increase on a per-unit basis as activity increases.

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Definitions:

Relative Efficiency

A measure comparing the precision or performance of two statistical estimators or methods.

Unbiased

An attribute of an estimator in statistics that means the expected value of the estimator equals the true parameter value it estimates.

Consistent

Referring to an attribute or behavior that is reliable and uniform over time, showing little to no variation.

Confidence Interval

A range of values that is used to estimate the true value of a population parameter with a certain level of confidence.