Ogawa Company Incurs Both Fixed and Variable Production Costs

question 229

Multiple Choice

Ogawa Company incurs both fixed and variable production costs.Assuming that production is within the relevant range,if volume goes up by 28%,then the total fixed costs would ________.

• A) increase by 28%
• B) remain the same
• C) increase by an amount less than 28%
• D) decrease by 28%

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Definitions:

ALU

Arithmetic Logic Unit, a critical component of a CPU that handles all arithmetic and logical operations, including addition, subtraction, and logical comparisons.

Ultrabook

A full-featured but lightweight laptop computer that features a low-power processor and a solid-state drive; it tries to reduce its size and weight to extend battery life without sacrificing performance.

Permanent Storage

Data storage devices or media that retain information permanently or for extended periods without power.

Random Access Memory

A type of computer memory that can be accessed randomly, used to store working data and machine code currently in use.