Select the Correct Statement Regarding Fixed Costs

question 7

Multiple Choice

Select the correct statement regarding fixed costs.

• A) Because they do not change, fixed costs should be ignored in decision making.
• B) The fixed cost per unit decreases when volume increases.
• C) The fixed cost per unit increases when volume increases.
• D) The fixed cost per unit does not change when volume decreases.

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Definitions:

Capital Goods

Long-lasting goods that are used in the production of other goods or services.

Bank Tellers

Individuals employed by banks to assist customers with routine transactions like withdrawing or depositing money, among other services.

ATMs Spread

The spread of ATMs refers to the increasing availability and distribution of Automated Teller Machines across different locations, making financial transactions more accessible.

Demand for Bank Tellers

The need or desire for the services provided by bank tellers, which can be influenced by factors like economic conditions and technological advancements.