Total Variable Costs

question 4

Multiple Choice

Total variable costs:

• A) Change proportionately with changes in activity levels
• B) Increase with a decrease in activity.
• C) Have no relevant range.
• D) Are constant regardless of changes in activity

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Definitions:

Fast Food Restaurant

A specific type of restaurant that serves quick-service food, often prepared in large quantities ahead of time and kept hot for fast serving.

Customers Arrive

Refers to the process or event when customers enter a business establishment or engage with a service.

Poisson Distribution

A quantified probability distribution highlighting the chances of a particular amount of events taking place in a fixed interval of space or time.

Arrival Rate

In queueing theory and operations research, the average rate at which entities (customers, jobs, requests) arrive at a service facility or system within a specified period.