Variable Costs Are Estimated Based On

question 30

Multiple Choice

Variable costs are estimated based on:

• A) capital equipment costs for the upcoming year.
• B) forecasted profits for the upcoming year.
• C) contracted amounts between a company and its vendors.
• D) the prior year activity levels with any expected changes for the coming year.

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Definitions:

Abbreviation

A shortened form of a word or phrase, used to save space or avoid repetition.

Drop

A small amount of liquid, made in a roughly spherical shape, often used to describe measurements of liquids.

Ml

Milliliter, a unit of volume in the metric system equal to one-thousandth of a liter, often used to measure liquids.

Liters

A metric unit of volume equal to 1,000 cubic centimeters, commonly used to measure liquids and gases.