The "Death-Spiral" Effect Refers To

Multiple Choice

The "death-spiral" effect refers to:

A) The allocation of fixed overhead costs over time to an increasing volume of output.
B) A possible consequence when variable, not full, costing is used.
C) A likely consequence when fixed overhead allocation rates are based on practical capacity.
D) The continual raising of prices, in response to decreases in sales volume, in an attempt to recover fixed costs.
E) Increases in product demand over time in response to increases in fixed promotional costs.