In those industries in which capacity can be added only in discrete or "lumpy" increments, fixed assets are increased in a ____ manner as sales increase.
A) proportional
B) stepwise
C) direct relationship
D) discriminant

Question

Quizplus · Accepted Answer

"Lumpy" increments imply that capacity cannot be added in a proportional or smooth manner. Instead, fixed assets will be increased in stepwise increments, i.e. in chunks or steps, as sales increase. Direct relationship and discriminant are not appropriate terms to describe this relationship.

In Those Industries in Which Capacity Can Be Added Only