Which One of the Following Statements Related to Variable Costs

question 299

Multiple Choice

Which one of the following statements related to variable costs is correct?

• A) Variable costs fluctuate over the long-term but remain constant over the short-term.
• B) An increase in the variable cost per unit increases the contribution margin.
• C) Variable costs change only when the quantity is varied by at least five percent.
• D) When production is halted, the variable costs of a project equal zero.
• E) The variable cost per unit is equal to the marginal cost at any level of output.

---

Definitions:

Ingroup

A social group to which a person psychologically identifies as being a member, often contrasting with an "outgroup" which the person does not identify with.

Outgroup

An outgroup is a social group to which an individual does not identify, often viewed with less favor than the in-group or the group to which the individual belongs.

Ingroup

A group to which an individual belongs, feels a sense of identity, and derives a positive self-esteem from membership.

Outgroup

Any group an individual does not belong to or identify with.