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:

Population Defective Rate

A measure in quality control that indicates the percentage of items in a population that are considered to be defective.

Tolerance Limit

The maximum and minimum allowable limits within which a product or service's characteristics must fall to be considered acceptable.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much they deviate from the average.

Tolerance Limit

Refers to the maximum and minimum allowable limits within which a process or product's parameters must fall to be considered acceptable.