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.

---

Definitions:

Leisure Time

Free time not consumed by work or compulsory activities, where individuals can engage in activities of their choice.

Study Time

The dedicated duration individuals allocate toward educational activities to learn or enhance knowledge and skills.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to do one thing over another.

Coconuts

Tropical fruits with a hard shell, edible flesh, and water inside, often used as food or in beverages.