How Does Seasonality Create Fluctuations in a Firm's Net Income

question 45

Multiple Choice

How does seasonality create fluctuations in a firm's net income over a year?

• A) Cost of goods sold will rise and fall along with sales, while administrative and other costs will remain relatively steady.
• B) Cost of goods sold will rise when sales fall, and vice versa, while administrative and other costs will remain relatively steady.
• C) Cost of goods sold, along with administrative and other costs, will rise when sales fall, and vice versa.
• D) Cost of goods sold, along with administrative and other costs, will rise and fall along with sales.

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Definitions:

Positive Reinforcers

Stimuli that, when introduced after a behavior, increase the likelihood of that behavior being repeated.

Counterconditioning

A behavior therapy technique that involves replacing an unwanted response to a stimulus with a wanted response.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning, without delving into the underlying psychological causes.

Aversive Conditioning

A behavior conditioning technique in which unpleasant stimuli are associated with undesirable behaviors to discourage those behaviors.