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Fixed Costs

Question 12

Multiple Choice

Fixed costs:


A) are constant over the short-run regardless of the quantity of output produced.
B) change as the quantity of output produced changes.
C) are subtracted from sales to compute the contribution margin.
D) reflect the change in a variable when one more unit of output is produced.
E) can be ignored in scenario analysis since they are constant over the life of a project.

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