Which One of the Following Statements Concerning Variable Costs Is

question 63

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 fixed costs when production is equal to zero.
• C)An increase in variable costs increases the operating cash flow.
• D)Variable costs are inversely related to fixed costs.
• E)Variable costs per unit are inversely related to the contribution margin per unit.

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