Which of the Following Best Describes Total Fixed Cost

question 95

Multiple Choice

Which of the following best describes total fixed cost?

• A) Costs that do not vary as output varies.
• B) Total cost divided by the quantity of output produced.
• C) Total variable cost divided by the quantity of output produced.
• D) Total fixed cost divided by the quantity of output produced.

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Definitions:

Intangibility

A characteristic of services indicating that they cannot be seen, touched, or made tangible in the same manner as physical products.

Standards Gap

A type of service gap; pertains to the difference between the firm’s perceptions of customers’ expectations and the service standards it sets.

Service Gaps Model

A framework for identifying and analyzing the discrepancies between customers' expectations of a service and their actual experiences, aiming to improve service quality.

Service Providers

Companies or individuals that offer services to others in exchange for payment.