Fixed Costs

question 183

Multiple Choice

Fixed costs:

• A)reduce the risk of loss
• B)are considered variable costs over the long run
• C)are graphed as a steeply sloped line
• D)provide less operating leverage

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Definitions:

Implied Warranties

Legal assurances that are not explicitly stated but are assumed in the sale of goods, suggesting they will function as expected.

Transaction

A business deal or action, such as buying or selling, between two or more parties.

Warranty

A warranty is a guarantee provided by a seller to a buyer, promising to repair or replace a product if it fails within a certain period after purchase.

Disclaimed

The act of renouncing a claim to or denying responsibility for something, often seen in legal disclaimers or warranties.