Which of the Following Statements Is True When Referring to Fixed

question 150

Multiple Choice

Which of the following statements is true when referring to fixed costs?

• A) Committed fixed costs arise from the annual decisions by management.
• B) As volume increases, unit fixed cost and total fixed cost will change.
• C) Fixed costs increase in total throughout the relevant range.
• D) Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.

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Definitions:

Capitalist Economy

A capitalist economy is an economic system where private individuals and businesses own the production and distribution of goods and services, operating for profit in competitive markets.

Antagonism

Active opposition or hostility between individuals or groups, often manifesting in conflicts or competition.

Market Situation

The current state or condition of a market, characterized by factors such as supply and demand, competition, and pricing.

Stratification System

The structured ranking of entire groups of people that perpetuates unequal rewards and life chances in society.