At an Output of Zero, ________ Is Zero

question 154

Multiple Choice

At an output of zero, ________ is zero.

• A) total fixed cost
• B) total variable cost
• C) total cost
• D) All of the above are correct.

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Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures, indicating the ability to repay creditors or pay dividends and interest to investors.

Accounts Payable Balance

The total amount of money owed by a company to suppliers for goods and services purchased on credit.

Payments To Suppliers

Money transferred to suppliers for goods or services received.

Direct Method

A cash flow statement presentation method that lists major classes of gross cash receipts and payments.