When the Cost Behavior Pattern Has Been Identified as Fixed

question 31

Multiple Choice

When the cost behavior pattern has been identified as fixed at a certain volume of activity:

• A)any change in volume will probably cause the cost to change.
• B)it is appropriate to express the cost on a per unit of activity basis.
• C)the total cost will not change even if the volume of activity changes substantially.
• D)the total cost may change if the volume of activity changes substantially.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued.

Promoters

Individuals or companies that engage in the organization and finance of business ventures, events, or performances.

Corporate Form

A legal structure for businesses that is recognized as a separate legal entity from its owners, providing liability protection and other benefits.

Duties

Responsibilities or obligations required by one's role, job, or by law.