A Cost That Changes in Total Proportionately to Changes in Volume

question 141

Multiple Choice

A cost that changes in total proportionately to changes in volume of activity is a(n) :

• A) Differential cost
• B) Fixed cost
• C) Incremental cost
• D) Variable cost
• E) Product cost

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Definitions:

Maturity Phase

A stage in the product life cycle where sales growth stabilizes, and the product is well established in the market, facing increased competition.

Market Segments

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics.

New-To-The-World

Products or services that create an entirely new market by being the first of their kind.

Consumer Preferences

The subjective tastes and desires that influence an individual’s choice of products or services.