Select the Incorrect Statement Regarding the Relationship Between Cost Behavior

question 79

Multiple Choice

Select the incorrect statement regarding the relationship between cost behavior and profits.

• A) A pure variable cost structure offers higher potential rewards.
• B) A pure fixed cost structure offers more security if volume expectations are not achieved.
• C) In a pure variable cost structure, when revenue increases by $1, so do profits.
• D) In a pure fixed cost structure, the unit selling price and unit contribution margin are equal.

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Definitions:

Social Lock-in

A situation in digital and social environments where users become dependent on a social network or technology, making it difficult for them to leave because of the high costs, efforts, or consequences of switching platforms.

Social Contacts

Individuals within one's social network, including friends, family, colleagues, and other connections made through social media platforms.

Statuscasting

The practice of broadcasting updates about one's status, activities, or location to friends or followers through social media platforms.

Social Engagement Ad

Advertising designed to increase interaction and involvement among consumers through social media platforms.