Which One of the Following Statements Concerning Variable Costs Is

question 63

Multiple Choice

Which one of the following statements concerning variable costs is correct?

• A)Variable costs minus fixed costs equal marginal costs.
• B)Variable costs are equal to fixed costs when production is equal to zero.
• C)An increase in variable costs increases the operating cash flow.
• D)Variable costs are inversely related to fixed costs.
• E)Variable costs per unit are inversely related to the contribution margin per unit.

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Definitions:

Quasi-experimental Design

An empirical study used to estimate the causal impact of an intervention on target population without random assignment. It is a rephrased definition highlighting its purpose for estimating causal relations.

True Experiments

Experimental designs in which the researcher manipulates the independent variable to observe its effect on a dependent variable, with random assignment to control and experimental groups.

Nutritional Benefits

Refers to the advantageous aspects of food substances that contribute to overall health and well-being, including support for body functions, energy, and disease prevention.

History Effect

As a threat to the internal validity of an experiment, refers to any outside event that is not part of the manipulation that could be responsible for the results.