Fixed Costs

question 66

Multiple Choice

Fixed costs:

• A)are constant over the short-run regardless of the quantity of output produced.
• B)change as the quantity of output produced changes.
• C)are subtracted from sales to compute the contribution margin.
• D)reflect the change in a variable when one more unit of output is produced.
• E)can be ignored in scenario analysis since they are constant over the life of a project.

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Definitions:

Vicarious Reinforcement

The process of learning behaviors by observing the consequences of others' actions, as explained in social learning theory.

Observing Behavior

The process of systematically watching and noting behaviors as they occur in their natural settings.

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Refers to an individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.

Facebook

A widely-used social networking platform that allows users to connect, share, and communicate with friends and family online.