Which of the Following Is True as Process Type Changes

question 6

Multiple Choice

Which of the following is true as process type changes from batch to continuous?

• A) Unit variable costs decrease, and initial fixed costs decrease.
• B) Initial fixed costs increase, while unit variable costs decrease.
• C) Unit variable costs increase, and initial fixed costs increase.
• D) Initial fixed costs decrease, while unit variable costs increase.

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Definitions:

Provisional Income

Income that is not guaranteed or fixed, often used in reference to determining the taxability of certain benefits such as Social Security.

Social Security

A federal program in the United States that provides retirement, disability, and survivors benefits to eligible individuals.

Married, Filing Jointly

A tax filing status available to married couples that allows them to file one tax return jointly, combining their incomes and deductions.

Marginal Ordinary Income Tax Rate

The tax rate that applies to the last dollar of the taxpayer's income, influencing decisions on additional income.