A Variable Cost Is One That Changes

question 113

Multiple Choice

A variable cost is one that changes

• A)in the long run only
• B)in the short run only
• C)year to year
• D)month to month
• E)as output changes

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Definitions:

Borrower's Creditworthiness

An assessment of a borrower's ability to repay their debts on time, often considered by lenders before issuing a loan.

Commercial Lending

The practice of lending money to businesses for various purposes such as operations, expansion, or capital equipment purchases.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Financial Crisis

A situation characterized by a significant decline in the value of financial institutions or assets, leading to a loss of confidence and potentially economic downturns.