Which Statement Best Describes the Relationship Between Per-Unit Fixed Costs

question 61

Multiple Choice

Which statement best describes the relationship between per-unit fixed costs and output?

• A) Per-unit fixed costs decrease as output increases.
• B) Per-unit fixed costs increase as output increases.
• C) Per-unit fixed costs decrease as output decreases.
• D) Per-unit fixed costs stay the same as output changes.

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Definitions:

Job Depth

The degree of control employees have over their tasks and procedures at work.

Assembly Line

A manufacturing process that breaks down the production into sequential steps carried out by different workers, significantly increasing efficiency.

Gain-Sharing Plan

A type of incentive plan that gives employees a share of the company's saved costs or increased profits, typically resulting from their collective efforts to improve performance.

Team-Based Pay

A compensation strategy where employee earnings are linked to the performance of their team as a whole rather than individual performance.