Which of the Following Is a True Statement Relating to Step

question 44

Multiple Choice

Which of the following is a true statement relating to step costs?

• A)Step costs remain constant over only a small range of activity.
• B)Step costs do not contain a fixed component.
• C)Step costs are also referred to as fixed costs.
• D)Step costs do not remain constant over a small range of activity.

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Definitions:

Warrants

Legal documents issued by a court or government authority that give law enforcement the power to perform certain actions, such as arrests or searches; also refers to financial instruments granting the right to purchase stock at a specified price.

De Facto Corporation

A business entity that operates like a corporation without formal incorporation status, but is treated as a corporation by law under certain conditions.

Incorporation Statute

Laws and regulations governing the process of establishing a corporation and outlining its legal status and structure.

Corporation by Estoppel

A principle where a company is treated as if it is incorporated for purposes of a particular transaction, even though it technically may not be, to prevent injustice or unfairness.