Variable Costs

question 38

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 the fixed assets required to change the level of output.
• D)are subtracted from fixed costs to compute the contribution margin.
• E)are added to fixed costs on a per-unit basis to compute the contribution margin.

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Definitions:

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