Variable Costs

question 31

Multiple Choice

Variable costs:

• A)change in direct relationship to the quantity of output produced.
• B)are constant in the short-run regardless of the quantity of output produced.
• C)are equal to the change in cost when one more unit of output is produced.
• D)are subtracted from fixed costs to compute the contribution margin.
• E)form the basis that is used to determine the degree of operating leverage employed by a
• firm)