Costs That Change with the Level of Production Are Referred

question 16

Multiple Choice

Costs that change with the level of production are referred to as ________.

• A) fixed costs
• B) variable costs
• C) target costs
• D) total costs
• E) overhead costs

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Definitions:

Accounts Payable Balance

The total amount of short-term liabilities or obligations a company owes to its creditors or suppliers.

Sales

The total revenue generated from goods or services sold by a company during a specific period.

COGS

Stands for Cost of Goods Sold, which is the direct costs attributable to the production of the goods sold by a company.

Current Asset Financing

A strategy involving the use of short-term credit to finance the ongoing operations and current assets of a business.