Fixed Costs

question 34

Multiple Choice

Fixed costs:

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

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Definitions:

Systems Flexibility

The capability of a system, such as an organizational or technological system, to adapt to changes or integrate new components without significant disruption.

Resource Acquisition

The process of identifying, obtaining, and allocating the necessary resources required for organizational operations or project completion.

Marketing Argument

An argument or rationale presented in favor of a product, service, or strategy, aiming to persuade potential customers or stakeholders of its value.

Diversity Training

A program designed to promote awareness and increase knowledge and skills to handle the diversity within the workforce effectively.