A Fixed Cost Is Constant If Expressed on a Per

question 265

True/False

A fixed cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases.

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Definitions:

Dividend

A rephrased definition: A portion of a company's earnings that is distributed to its shareholders on a regular basis.

Intrinsic Value

The inherent worth of a company, stock, or security, based on fundamental analysis without reference to its market value.

At-the-money

A term used in options trading to describe an option whose strike price is identical to the current price of the underlying asset.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a particular asset at an agreed-upon price within a specified time.