A Fixed Cost Is a Cost That Changes Per Unit

question 103

True/False

A fixed cost is a cost that changes per unit as a cost driver changes.

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Definitions:

Special Discounted Price

A reduced price offered on a product or service, often to stimulate sales, clear inventory, or reward customers.

Opportunity Cost

The potential benefit that is foregone from not following the best alternative action or decision.

Price Reduction

A decrease in the listed price of goods or services, often used as a strategy to increase sales or competitive position.

Unit Sales

The quantity of individual items or products sold by a company, often used to measure business performance.