Which of the Following Is the Correct Formula for Variable

question 71

Multiple Choice

Which of the following is the correct formula for Variable Costs?

• A) Variable unit cost + Sales volume (in units)
• B) Variable unit costs × Sales volume (in units)
• C) Variable unit costs/Sales volume (in units)
• D) Variable unit costs - Sales volume (in units)

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding cost of goods sold (COGS).

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to an authority as the result of the occurrence of a taxable event.

Dividends Paid

Cash or other forms of payouts made by a company to its shareholders from its earnings.

Net Cash Flow

The difference between a company's cash inflows and outflows in a given period.