Which of the Following Statements Regarding Fixed Costs Is Incorrect

question 101

Multiple Choice

Which of the following statements regarding fixed costs is incorrect?

• A)Expressing fixed costs on a per unit basis usually is the best approach for decision making.
• B)Fixed costs expressed on a per unit basis will decrease with increases in activity.
• C)Total fixed costs are constant within the relevant range.
• D)Fixed costs expressed on a per unit basis will increase with decreases in activity.

---

Definitions:

Preproduction Practice

The phase in filmmaking that includes the planning and preparation of a project before actual shooting begins.

Packaging

The process of enclosing or protecting products for distribution, sale, and use.

Highest Bidder

An individual or entity that offers the most significant amount of money for a good, service, or asset in an auction or sale.

Talent Agent

A professional representative who seeks and negotiates employment and endorsement deals for artists, entertainers, and athletes.