Average Fixed Costs

question 40

Multiple Choice

Average fixed costs

• A)are always rising with increases in production
• B)are dependent on marginal costs.
• C)are dependent on average variable costs.
• D)are always falling with increases in production.

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Definitions:

Span of Control

The number of subordinates directly supervised by a manager, indicating the breadth of management's control.

Hierarchy of Authority

A structured order of positions within an organization, where each level has specific powers and responsibilities over the levels below.

Formal Documentation

Official, written documents that record agreements, processes, or conditions to provide evidence or facilitate standardization.

Delegating Authority

The act of transferring decision-making power and responsibility from one individual to another, typically from a higher to a lower level in an organization.