Parker Corporation Observed That When 25,000 Units Were Sold, a Particular

question 91

Multiple Choice

Parker Corporation observed that when 25,000 units were sold, a particular cost amounted to $75,000, or $3.00 per unit. When volume increased by 10%, the cost totaled $82,500 (i.e., $3.00 per unit) . The cost that Parker is studying can best be described as a:

• A) variable cost.
• B) fixed cost.
• C) semivariable cost.
• D) discretionary fixed cost.
• E) step-fixed cost.

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Definitions:

Negative Schema

A cognitive structure that allows people to readily make negative associations.

Negative Information

Data or facts that produce adverse or undesirable impressions or expectations.

Depressive Schema

Cognitive patterns and beliefs that predispose individuals to perceive the world and themselves in a negative light, often associated with depression.

Learned Helplessness

The cognitive, motivational, and emotional deficits that follow a perceived lack of control over important aversive events.