Costs That Fall with Increases in the Level of Investment

question 4

Multiple Choice

Costs that fall with increases in the level of investment in current assets are called:

• A) current asset costs.
• B) fixed costs.
• C) flexible costs.
• D) liquid capital costs.
• E) shortage costs.

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Definitions:

Millions

A numerical term representing one thousand thousands, or 1,000,000.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Net Income

The conclusive financial profit of a company after subtracting expenses and tax payments from its revenue stream.

Dividends

Funds dispensed by a business to its shareholders, allocating a fraction of the company's financial gains to them.