A Variable Cost Is One That Changes _____

question 192

Multiple Choice

A variable cost is one that changes _____

• A)only in the long run.
• B)only in the short run.
• C)year to year.
• D)month to month.
• E)as the level of output changes.

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Definitions:

Formal Instruments of Credit

Legal documents that acknowledge debt and specify terms of repayment, such as notes payable or bonds.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue by comparing net credit sales to the average accounts receivable.

Net Receivables

The amount of money expected to be received from accounts receivable after deducting allowances for bad debts or discounts.

Formal Instrument of Credit

A written document that acknowledges debt and specifies the terms under which it will be repaid.