Select the Appropriate Cost Behavior for Each of the Costs

question 99

Multiple Choice

Select the appropriate cost behavior for each of the costs listed below.
-license fees on automobiles

• A)variable
• B)fixed

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Definitions:

Tastes and Preferences

The subjective factors that influence an individual's choices among various products and services.

Advertising

The activity or profession of producing advertisements for commercial products or services.

Less Elastic Demand

Demand that does not significantly change in response to a price change, indicating consumers' necessity or commitment to purchasing the product.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage of the cost.