For a Large Firm That Produces and Sells Automobiles, Which

question 175

Multiple Choice

For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?

• A)the $20 million payment that the firm pays each year for accounting services
• B)the cost of the steel that is used in producing automobiles
• C)the rent that the firm pays for office space in a suburb of St. Louis
• D)All of the above are correct.

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Definitions:

Increased Value

The rise in the worth or market price of an asset.

Annual Dividend

The total amount of dividends a company pays out to its shareholders over a year, often expressed as a per share amount.

Shares

Units of ownership interest in a corporation or financial asset that represent an equal proportion in the distributing of any profits, if any are declared, in the form of dividends.