Which of the Following Best Describe the Term Variable Costs

question 386

Multiple Choice

Which of the following best describe the term variable costs.

• A) The sales level that results in zero project net income.
• B) The sales level where operating cash flow is equal to zero.
• C) Costs that change when the quantity of output changes.
• D) Options for future, related business products or strategies.
• E) A combination of scenario and sensitivity analyses.

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Definitions:

Demand

Refers to the quantity of a particular good or service that consumers are willing and able to purchase at various prices during a given period of time.

Price-Elastic

Describing a situation where the demand for a product significantly changes in response to changes in its price.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, normally downward sloping.

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.