Which One of the Following Statements Concerning Variable Costs Is

question 57

Multiple Choice

Which one of the following statements concerning variable costs is correct?

• A)Variable costs minus fixed costs equal marginal costs.
• B)Variable costs are equal to zero when production is equal to zero.
• C)An increase in variable costs increases the operating cash flow.
• D)Variable costs minus fixed costs equals the contribution margin.
• E)Future variable costs are generally known with certainty.

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