Which of These Most Accurately Explains the Behaviour of Costs

question 47

Multiple Choice

Which of these most accurately explains the behaviour of costs?

• A) The majority of costs are variable per unit of production.
• B) There is no norm; costs can be fixed, variable or a combination of both.
• C) Costs can be fixed or variable but not a combination of both.
• D) The majority of costs are fixed per unit of production.

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Definitions:

Composes

The act of creating, writing, or putting something together, such as music, literature, or a document.

Financial Resources

Assets or funds that are available to a person or organization for spending, investing, or covering expenses.

Positive Language

The use of words that convey positive connotations and encourage constructive and affirmative interactions.

Mislead

To provide false or misleading information intentionally or unintentionally, causing someone to have an incorrect understanding or belief.