As the Level of Activity Increases, the Fixed Cost Per

question 67

Multiple Choice

As the level of activity increases, the fixed cost per unit of activity

• A)increases.
• B)does not change.
• C)decreases.
• D)may increase or decrease.

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Definitions:

Risk Transfer Plan

A strategy to shift potential risks to a project to another party, usually through insurance or contracts, as a way to mitigate negative impacts.

Risk Acceptance Plan

A strategy where potential risks are acknowledged but deemed manageable or low enough to proceed without additional mitigation measures.

Risk Avoidance Plan

A strategy or approach to identify, assess, and prevent potential risks from impacting a project or business activity.

Financial Risk

The possibility of losing money or the financial uncertainty involved in an investment, business venture, or other financial activities.