Variable Expenses, Those Expenses That Do Not Remain Constant, Are

question 36

Multiple Choice

Variable expenses, those expenses that do not remain constant, are ____________.

• A) laboratory costs
• B) mortgage
• C) dental supplies
• D) both a and c

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Definitions:

Trading On The Equity

The practice of borrowing funds at a lower rate of interest to invest in assets that yield a higher rate of return, utilizing the leverage to increase equity returns.

Profitability

Profitability measures the degree to which a business or activity yields profit or financial gain.

Liquidity Ratios

Financial metrics used to determine an entity's ability to pay off its short-term debts obligations.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.