Variable Costs

question 81

Multiple Choice

Variable costs:

• A) change in direct relationship to the quantity of output produced.
• B) are constant in the short-run regardless of the quantity of output produced.
• C) are equal to the change in a variable when one more unit of output is produced.
• D) are subtracted from fixed costs to compute the contribution margin.
• E) form the basis that is used to determine the degree of operating leverage employed by a firm.

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Definitions:

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