Which of the Following Is a Variable Cost

question 4

Multiple Choice

Which of the following is a variable cost?

• A)A cost that is $26,000 when production is 65,000,and $26,000 when production is 91,000.
• B)A cost that is $26,000 when production is 65,000,and $36,400 when production is 91,000.
• C)A cost that is $26,000 when production is 65,000,and $52,000 when production is 91,000.
• D)A cost that is $52,000 when production is 65,000,and $52,000 when production is 91,000.

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Definitions:

Opportunity Cost

Opportunity cost is the cost of foregoing the next best alternative when making a decision, representing the benefits that could have been gained by choosing the alternative option.

Opportunity Cost

The expense associated with not choosing the second-best option when deciding.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Point E

typically used in the context of graphs, it can represent a specific equilibrium point or any designated point of interest.