Variable Costs

question 5

Multiple Choice

Variable costs:

• A)change in direct proportion to output or activity levels
• B)change in indirect proportion to output or activity levels
• C)change in direct proportion to expense levels
• D)change in indirect proportion to expense levels

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Definitions:

Net Loss

The amount by which total expenses exceed total revenues in a financial period, indicating a loss.

Operations

The day-to-day activities required for the running of a business for the purpose of producing value for the stakeholders.

Articles of Partnership

A document that formalizes an agreement between parties to enter into a business partnership, detailing the terms and conditions of the partnership.

Annual Salary

The total amount of money that an employee earns in one year.