Variable Costs

question 34

Multiple Choice

Variable costs:

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