Which One of the Following Statements Related to Variable Costs

question 119

Multiple Choice

Which one of the following statements related to variable costs is correct?

• A) Variable costs fluctuate over the long-term but remain constant over the short-term.
• B) An increase in the variable cost per unit increases the contribution margin.
• C) Variable costs change only when the quantity is varied by at least five percent.
• D) When production is halted, the variable costs of a project equal zero.
• E) The variable cost per unit is equal to the marginal cost at any level of output.

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