Jeremy Has Been Content at His Job in the Textile

question 30

Multiple Choice

Jeremy has been content at his job in the textile mill for several years. Today he discovered that he was being released in order for the company to stay solvent. Jeremy lost his job in the process of:

• A) globalization.
• B) downsizing.
• C) remodeling.
• D) diminution.

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Definitions:

Total Fixed Cost

It encompasses all the expenses that do not change regardless of the business activity volume, such as rent and salaries.

Servicing Materials

Supplies or materials used in the maintenance and repair of products or equipment.

Planning Budget

A budget created at the beginning of the budgeting period that is valid for a planned level of activity.

Fixed Cost

A cost that does not change with the level of production or sales volume, remaining constant even when output varies.