Which Statement Is Not True Regarding the Total Variable Cost

question 43

Multiple Choice

Which statement is not true regarding the total variable cost curve?

• A) It increases as output increases.
• B) It shows the variable cost of production given current factor prices.
• C) It starts at the origin.
• D) It is a horizontal line.

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Definitions:

Unused Capacity

Portions of a company's resources or potential that are not being used at full efficiency or are idle.

Capacity Analysis

The assessment of a company's ability to produce goods or deliver services, compared to its potential or actual demand.

Time-Driven Activity-Based Costing

A costing method that assigns costs based on the actual duration of activities rather than on estimated overhead rates.

Customer Support Department

A functional unit within an organization tasked with providing assistance and guidance to customers before, during, and after a purchase.