Which of the Following Are Examples of Variable Expenses

question 5

Multiple Choice

Which of the following are examples of variable expenses?
I.Automobile maintenance.
II.Automobile loan payments.
III.Home maintenance.
IV.Utilities.

• A)I,II.
• B)II,III.
• C)I,III,IV.
• D)II,III,IV.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.

Dividends

Financial distributions to a corporation's shareholders, usually coming from the business's earnings.

Quantity Variance

A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input.