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Steve and Cathy Are Managers at an Advertising Firm

question 49

Multiple Choice

Steve and Cathy are managers at an advertising firm.Steve proposes that the company adopt defined-benefit plans to attract and retain its employees,and Cathy opposes his view.Which of the following statements will strengthen Steve's argument?


Definitions:

Fixed Costs

Static expenses that are independent of production or sales volumes, including costs like rental fees, salary payments, and insurance.

Selling Prices

The amount a customer pays to purchase a product or service from a seller.

Variable Costs

Expenses that vary with the amount of output or sales.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent or salaries.

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