A Cost That Remains Unchanged in Total as the Activity

question 28

Multiple Choice

A cost that remains unchanged in total as the activity level (or cost driver) changes is called a:

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

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Definitions:

Crisis Management

The process by which an organization deals with a disruptive and unexpected event that threatens to harm the entity or its stakeholders.

Contingency Plan

A strategy or plan developed to address unforeseen events or emergencies to minimize impact and ensure continuity of operations.

Vision

Ability to perceive marketplace needs and what an organization must do to satisfy them.

Focused

Concentrating on a specific task or goal with attention and effort.