Which of the Following Best Describes Semi-Variable Costs

question 6

Multiple Choice

Which of the following best describes semi-variable costs?

• A)Costs that fluctuate with what is consumed but may not be linked directly to customer demand and the volume of services provided
• B)Costs that do not fluctuate with what is consumed but may be linked directly to customer demand and the volume of services provided
• C)Costs that fluctuate even if no services are provided and may be linked directly to economic environment
• D)Costs that fluctuate with what is consumed and may be linked directly to customer demand and the volume of services provided
• E)Costs that do not fluctuate with what is consumed and may not be linked directly to customer demand and the volume of services provided

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Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or utility that a person derives from consuming each additional unit of a good or service.

Demand Curves

A graphical representation that shows the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.

Marginal Utility

The extra value or satisfaction garnered by a consumer with the acquisition of one more unit of a good or service.

Total Utility

The overall satisfaction or happiness received from consuming a certain amount of goods or services.