A Variable Cost

question 26

Multiple Choice

A variable cost

• A)changes in the same direction and in inverse proportion to changes in operating activity.
• B)changes in the opposite direction and in direct proportion to changes in operating activity.
• C)changes in the same direction and in direct proportion to changes in operation activity.
• D)is synonymous with labor costs

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Definitions:

Specific Payee

A person or entity named in a negotiable instrument to whom or to whose order the money is directed to be paid.

Alternative Payees

Parties other than the original recipient designated to receive payments or benefits in specific arrangements.

Payable

Refers to an amount of money that is owed and should be paid, often within a specific period of time.

Instrument

Refers to a legal document formalizing an agreement or right, often used in financial transactions.