Which of the Following Statements Most Accurately Explains the Behavior

question 75

Multiple Choice

Which of the following statements most accurately explains the behavior of costs?

• A) There is no norm; rather, costs can be fixed, variable, or a combination of both.
• B) The majority of costs are variable per unit of production.
• C) The majority of costs are fixed per unit of production.
• D) Costs can be fixed or variable but usually not a combination of both.

---

Definitions:

Strategic Management

The process of setting goals, conducting analyses, making decisions, and implementing strategies in an organization to achieve its long-term objectives.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes or scenarios.

Strategic Planning

Strategic planning involves determining the course an organization will take and deciding how to allocate resources, such as money and personnel, to follow that path.

Forecasting

the process of making predictions about future events based on historical and current data.