Variable Costs

question 244

Multiple Choice

Variable costs

• A)are fixed per unit and vary in total as production levels change.
• B)are fixed in total as production levels change.
• C)decrease per unit as production volume increases.
• D)vary per unit of output as production levels change.

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Definitions:

Expected Return

The weighted average of all possible returns for an investment, taking into account the likelihood of each outcome.

Unsystematic Risk

A type of risk that affects a specific company or industry, distinct from marketwide risks.

Portfolio Beta

An indicator of the level of fluctuation, or inherent risk, within an investment portfolio relative to the overall market.

Overall Market

Refers to the aggregated performance of all investment assets or stocks within a particular market or index.