A Variable Cost Is One That Does Not Increase in Total

question 152

True/False

A variable cost is one that does not increase in total as output increase and does not decrease in total as output decreases.

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Definitions:

Target Return-On-Investment Pricing

Setting a price to achieve an annual target return on investment (ROI).

Orion Lunar Spacecraft

A NASA spacecraft designed to carry astronauts to the Moon and beyond as part of the Artemis program.

Cost-plus-fixed-fee Pricing

A pricing strategy where the selling price is determined by adding a fixed fee or profit margin to the total cost of manufacturing or producing the product.

Yield Management Pricing

A pricing strategy that involves adjusting prices based on changing demand and supply conditions, often used in industries like airlines and hotels to maximize revenue.