An Increase in Variable Costs Increases the Operating Cash Flow

question 63

True/False

An increase in variable costs increases the operating cash flow.

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Definitions:

Directors' Meeting

A formal gathering of the board of directors of an organization to discuss and make decisions on company policy and management issues.

Preferred Shares

A type of stock that provides dividends and certain privileges in the event of liquidation before common stockholders.

Common Share

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.