Variable Costs

question 84

Multiple Choice

Variable costs:

• A) Do not vary in total within the relevant range
• B) Do not vary on a per-unit basis within the relevant range
• C) Vary on a per-unit basis within the relevant range
• D) Both (a) and (c)

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Definitions:

Tension

A state of mental or emotional strain, stress, or conflict that can also refer to the physical stretching of an object or material.

Decision

The act or process of making choices or selecting an option from a range of possibilities, often after a period of deliberation.

Framing Effect

The tendency for people’s choices to be affected by how a choice is presented, or framed, such as whether it is worded in terms of potential losses or gains.

Potential Losses

Possible negative outcomes or detriments that could occur as a result of specific actions, decisions, or events.