Companies That Carry a High Level of Fixed Costs Relative

question 9

Multiple Choice

Companies that carry a high level of fixed costs relative to variable costs are considered to have

• A)A greater risk than companies with a high level of variable costs relative to fixed costs.
• B)A lesser risk than companies with a high level of variable costs relative to fixed costs.
• C)The same level of risk as companies with a high level of variable costs relative to fixed costs.
• D)Either a greater or lesser risk,depending on product costs relative to period costs.

---

Definitions:

Attitude Function

The psychological purpose that an attitude serves for an individual, such as ego-defensive or value-expressive functions.

Accessible

Easy to approach, reach, enter, or use by people of all abilities, including those with disabilities.

Multiple-Act Criterion

Term for a general behavioural index based on an average or combination of several specific behaviours.

Subjective Norm

The perceived social pressure to perform or not perform a particular behavior, based on the expectations of others.