In a Volume Sensitive Business, the Ratio of Costs Is

question 129

Multiple Choice

In a volume sensitive business, the ratio of costs is:

• A) high fixed cost to total cost
• B) high fixed costs to variable costs
• C) high variable costs to total costs
• D) high variable costs to fixed costs

---

Definitions:

Under-Exploited

Resources or opportunities not fully utilized or maximized to their potential benefit.

Market

A venue or mechanism through which parties engage in the exchange of goods, services, or financial instruments.

Unknown Quantity

A variable or value in a mathematical equation or problem that is not directly known but can be calculated or estimated.

Proportion

A subdivision, quota, or ratio analyzed in respect to its full size.