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:

Per Stirpes

A legal term describing a method of distributing an estate whereby each branch of the deceased's family receives an equal share of the estate.

Estate

The total of all the assets, properties, and liabilities that a person leaves behind upon death.

Fraud

(1) An intentional deception that causes harm to another. (2) A basis for contesting a will if the testator relied on false statements when he or she made the will.

False Statements

Assertions or claims that are not true, which in certain contexts, such as under oath in court or in financial reporting, can be illegal or fraudulent.