You Have $450 in Your Checking Account When Your ATM

question 170

Multiple Choice

You have $450 in your checking account when your ATM card and PIN are stolen.You could lose up to _____ if you report the lost ATM card within 2-8 business days.

• A) $ 0
• B) $ 25
• C) $ 50
• D) $450
• E) $500

---

Definitions:

Relevant Range

The span of activity or volume in which the assumptions about fixed and variable cost behavior remain valid.

Variable Cost

A cost that changes in direct proportion to changes in the level of production or sales volume.

Total Fixed Cost

The sum of all constant expenses that a company incurs, regardless of the manufacturing or sales volume.

Relevant Range

The range of activity or volume over which the assumptions about fixed and variable cost behavior hold true.