A Discretionary Fixed Cost

question 103

Multiple Choice

A discretionary fixed cost

• A)remains the same per unit regardless of the level of activity.
• B)increases as the level of activity increases.
• C)can be changed in the short run.
• D)can be changed over the long run.

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Definitions:

Market Value

Market value refers to the current price at which an asset or a company can be bought or sold on the open market.

November 45 Put

A put option contract with a strike price of 45 that expires in November, giving the holder the right to sell the underlying asset at the strike price.

Risk-Free Asset

A theoretical financial instrument that offers guaranteed returns with no risk of financial loss, often represented by government bonds.

Strike Price

The price at which the holder of an option can buy (in a call option) or sell (in a put option) the underlying security.