Select the Correct Statement Regarding Fixed Costs

question 7

Multiple Choice

Select the correct statement regarding fixed costs.

• A) Because they do not change, fixed costs should be ignored in decision making.
• B) The fixed cost per unit decreases when volume increases.
• C) The fixed cost per unit increases when volume increases.
• D) The fixed cost per unit does not change when volume decreases.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally—naturally and automatically—triggers a response without any learning needed.

Behaviorism

An approach to psychology that emphasizes the study of observable behavior and the role of the environment and prior experience as determinants of behavior.

Psychoanalysis

A therapeutic approach founded by Sigmund Freud, focusing on unconscious processes and childhood experiences.

Gestalt Psychology

A psychological approach that emphasizes the whole of anything is greater than its parts, focusing on perception and problem-solving.