Which of the Following Statements Regarding Fixed Costs Is TRUE

question 113

Multiple Choice

Which of the following statements regarding fixed costs is TRUE?

• A) Fixed costs rise by a constant amount for every added unit of volume.
• B) While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs.
• C) Fixed costs are those costs associated with direct labor and materials.
• D) Fixed costs equal variable costs at the break-even point.
• E) Fixed cost is the difference between selling price and variable cost.

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Definitions:

Lumbar Vein

A vein that drains the posterior wall of the abdomen and the spinal cord in the lumbar region.

Ventral Thoracic Vein

A vein located in the ventral (front) part of the thorax, involved in blood circulation.

Subscapular Vein

A vein located beneath the scapula, responsible for draining blood from the shoulder and upper back areas.

Internal Thoracic Vein

A vein located along the inner side of the thoracic wall, draining blood from the chest wall and breasts back to the heart.