Total Variable Cost

question 23

Multiple Choice

Total variable cost

• A) Increases when output increases
• B) Is unaffected by changes in output
• C) Decreases when output increases
• D) Is stable over a range of output and increases when output reaches defined threshold

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Definitions:

Equilibrium

A state of balance or stability, often referring to a chemical reaction being in a state where reactants and products are formed at the same rate.

Strategic Fit

The alignment between an organization's strategic goals and its resources, processes, and capabilities.

Value Chain

A business model that describes the full range of activities needed to create a product or service, from conception to delivery.

Functional Goals

Objectives set within an organization that are specific to a particular department or function, aimed at improving its efficiency or effectiveness.