Variable Costs​

question 31

Multiple Choice

Variable costs​

• A) ​are greater than fixed costs
• B) are greater than total costs​
• C) are paid after fixed costs​
• D) change with the level of output​

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Definitions:

Return On Investment

An evaluation tool for assessing the profit or efficiency of an investment, which involves dividing the investment's net profit by its cost.

Investment Center

A business unit or segment that is responsible for its own revenues, expenses, and investments, and its performance is measured by its return on investment (ROI).

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Residual Income

The amount of income that an individual has after all personal debts, including the mortgage, have been paid. In a corporate context, it's the profit remaining after deducting the cost of capital.