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:

Fixed Resource

A resource or asset in production whose quantity cannot easily be increased or decreased in the short term.

Short Run

in economics, refers to a period during which at least one input, such as plant size, is fixed and cannot be changed.

Long Run

A period of time in economics where all factors of production and costs are variable, allowing for complete adjustment to changes in market conditions.

Fixed Resource

An asset or input whose quantity cannot be altered in the short run for the production of goods and services.