As Activity Changes, Total Variable Cost Increases or Decreases Proportionately

question 48

True/False

As activity changes, total variable cost increases or decreases proportionately with the activity change, but unit variable cost remains the same.

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Definitions:

Ambulatory

In legal terms, ambulatory refers to something that is changeable or revocable until it becomes effective, often used in the context of wills and trusts.

Income Beneficiary

An individual or entity entitled to receive income generated from a trust, estate, or other financial instrument.

Trust

A legal arrangement where one party holds property on behalf of another party, often used for managing assets, estate planning, and in charitable giving.

Personal Representative

An individual appointed to manage the estate of a deceased person during probate, sometimes known as an executor.