Select the Correct Statement Regarding Fixed Costs

question 44

Multiple Choice

Select the correct statement regarding fixed costs.

• A) There is a contradiction between the term "fixed cost per unit" and the behavior pattern implied by the term.
• B) Fixed cost per unit is not fixed.
• C) Total fixed cost remains constant when volume changes.
• D) All of these are correct statements.

---

Definitions:

Reverse Stock Splits

A corporate action in which a company reduces the number of its existing shares to increase the share price without changing the company's market capitalization.

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

New Capital

Financial resources that are raised by a business through issuing new stocks or bonds to invest in its operations and growth.

Cash Dividends

Payments made by a corporation to its shareholder members, distributing a portion of its earnings in cash.