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Which of the Following Quotes Best Illustrates the Idea of Fixed

Question 17

Multiple Choice

Which of the following quotes best illustrates the idea of fixed cost?


A) "As we increase output, per-unit costs fall."
B) "My primary source of overhead cost is the cost of running the head office."
C) "If I need to, I can negotiate more overtime with my work force to meet unexpected orders."
D) "If I double the number of workers and trucks, I get only 80 percent more packages delivered."
E) None of the above

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