Costs That Remain the Same Over a Wide Range of Activity

question 24

Multiple Choice

Costs that remain the same over a wide range of activity, but jump to a different amount outside that range, are known as:

• A) step-fixed costs.
• B) step-variable costs.
• C) semivariable costs.
• D) curvilinear costs.
• E) mixed costs.

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Definitions:

Constituency Development

The process of building and maintaining relationships with stakeholders or groups that an organization or political entity depends on for support and advocacy.

Strategic Constituencies

Groups or stakeholders whose support is essential for an organization's survival and success, such as customers, employees, suppliers, and investors.

Value Creation

The process by which goods or services are provided that offer customers better value than those of competitors, either through lower price or by providing greater benefits and service that justifies higher prices.

Competitive Advantage

Achieving a superior position in the marketplace through distinctive products, services, or processes that competitors find difficult to replicate.