When a Greater Proportion of Costs Are Fixed Costs, Then

question 184

Multiple Choice

When a greater proportion of costs are fixed costs, then:

• A)a small increase in sales results in a small decrease in operating income
• B)when demand is low the risk of loss is high
• C)when demand is high the breakeven point is increased
• D)a decrease in sales reduces the cost per unit

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Definitions:

Personality

A unique combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.

Neuroticism

A personality trait characterized by sadness, moodiness, and emotional instability.

Divorce

The legal dissolution of a marriage by a court or other competent body.

Conscientiousness

A characteristic of personality that is marked by being well-organized, reliable, and having a profound sense of responsibility.