A Characteristic of a Variable Cost Is That the

question 88

Multiple Choice

A characteristic of a variable cost is that the

• A)total cost varies in proportion to changes in the level of activity.
• B)cost per unit increases as activity increases.
• C)total cost varies indirectly with the level of activity.
• D)the total cost remains constant, regardless of the level of activity.

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Definitions:

Creativity

The ability to generate new and original ideas, solutions, or products that are useful and sometimes unexpected.

Trustworthiness

The quality of being reliable, dependable, and worthy of trust, critical in building and maintaining relationships in both personal and professional contexts.

Management Process

A systematic approach to planning, organizing, leading, and controlling an organization's resources to achieve its objectives.

Planning and Budgeting

The process of defining an organization's goals, establishing strategies to achieve those goals, and allocating resources accordingly.