Fixed Costs Are Represented Graphically As

question 56

Multiple Choice

Fixed costs are represented graphically as:

• A) a horizontal line, staying the same irrespective of the level of activity.
• B) starting at zero and increasing as a straight line as activity increases.
• C) starting at a given point and increasing as a straight line as activity increases.
• D) the intersection of the total costs and total revenue lines.

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Definitions:

Maturity

The date on which a financial obligation must be repaid or the final payment is due.

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument is due.

Repay

To make payment back to someone from whom money has been borrowed.

Withdraw

To remove or retract something, such as funds from a bank account, or to cease participation in an activity or agreement.