Fixed Costs That Cease to Exist After a Product Line

question 122

Multiple Choice

Fixed costs that cease to exist after a product line is discontinued are called

• A)unavoidable fixed costs.
• B)avoidable fixed costs.
• C)variable fixed costs.
• D)irrelevant fixed costs.

---

Definitions:

Benefits-Received Principle

The concept that individuals should be taxed in proportion to the benefits they receive from government services.

Taxpayer Contributions

Monies paid into a government treasury by individuals or businesses for public use and services.

Public Expenditures

Money spent by the government on various services and projects for the public good.

Ability-to-Pay Principle

A principle in taxation that states taxes should be levied according to a taxpayer's ability to pay, typically implying higher taxes for those with higher income.