Which of the Following Statements Is TRUE About Fixed and Variable

question 173

Multiple Choice

Which of the following statements is TRUE about fixed and variable costs?

• A)Variable costs are constant in total and fixed costs are constant per unit.
• B)Both costs are constant when considered on a total basis.
• C)Both costs are constant when considered on a per-unit basis.
• D)Fixed costs are constant in total and variable costs are constant per unit.

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Definitions:

Discrimination Learning

The process of learning to respond differently to various stimuli or situations, often by recognizing differences.

Cognitive Map

A cognitive map is a mental representation of a person's physical environment, allowing them to navigate and understand spatial information.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.

Subsequent Decision Making

Refers to the process of making decisions that follow an initial decision, taking into account the outcomes and new information that have emerged since the first decision.