The Potential for Spreading Fixed Costs Over a Greater Volume

question 8

True/False

The potential for spreading fixed costs over a greater volume of output means that unit cost continues to decline even after full capacity utilization has been reached.

---

Definitions:

Corporate Costs

Expenses incurred by a corporation in the course of doing business.

Situation

The set of circumstances or state of affairs at a particular time and place; encompasses both the physical environment and the context within which something occurs.

Fluent English

The ability to speak and understand English smoothly and effortlessly.

Colleagues

People with whom one works, especially within the same organization or profession.