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:

Supremacy Clause

A provision in the United States Constitution that establishes federal law as the supreme law of the land, taking precedence over state laws.

Incorporation Doctrine

A legal principle that applies the Bill of Rights to the states by interpreting the 14th Amendment's Due Process Clause as encompassing those rights.

Bill of Rights

The first ten amendments to the U.S. Constitution, ratified in 1791, guaranteeing essential rights and liberties to American citizens.

Multinational Corporations

Large business organizations that operate and provide goods or services in multiple countries beyond their country of origin.