Which of the Following Is the Difference Between Variable Costs

question 42

Multiple Choice

Which of the following is the difference between variable costs and fixed costs? (CMA adapted)

• A) Variable costs per unit fluctuate and fixed costs per unit remain constant.
• B) Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable.
• C) Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change.
• D) Variable costs per unit change in varying increments, while fixed costs per unit change in equal units.

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Definitions:

Teleological

Pertaining to the explanation of phenomena by the purpose they serve rather than by postulated causes.

Consequences

The outcomes, effects, or results that naturally follow from an action or condition.

Number Rules

Guidelines or principles related to the use, representation, and manipulation of numbers in various contexts.

Startup Capital

Initial funding needed to start a business, which may cover costs such as product development, marketing, and operations.