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:

Prejudice

Preconceived opinion that is not rooted in actual experience or knowledge; biased judgment or unfair feelings directed toward individuals based solely on their membership in a particular group.

Society

A group of individuals living together in a more or less ordered community with shared laws, traditions, and values.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or beautiful by others.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.