Variable Costs Are Defined as Costs That

question 86

Multiple Choice

Variable costs are defined as costs that

• A)vary depending on the advertising budget for the product.
• B)vary depending on the type of material used in production.
• C)change only during economic downturns.
• D)vary depending on the number of units produced or sold.
• E)remain constant even though the product offering varies.

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Definitions:

Adjusted Trial Balance

A financial statement that lists all accounts and their balances after adjustments have been made.

Expense Accounts

Accounts that track the costs of operating a company including costs of goods sold, operating expenses, and non-operating expenses.

Owner's Capital

The total assets contributed by the owner of a company plus the retained earnings minus withdrawals made by the owner.

Journalize Closing Entries

The process of recording year-end closing entries in the journal to prepare the accounts for the next fiscal period.