Variable Cost Refers to Variable Cost Expressed

question 295

Multiple Choice

variable cost refers to variable cost expressed

• A) as the sum of all units sold.
• B) on a per unit basis for a product.
• C) as a percentage of total sales.
• D) as a percentage of fixed costs.
• E) as a percentage of total costs.

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Definitions:

Notes Payable

Short or long-term liabilities; a written promise to pay a specified amount of money, known as the principal, along with interest, by a certain date.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before any dividends to common stockholders.

Common Equity

The amount of money that would be returned to shareholders if all the company's assets were liquidated and all its debts repaid.

Year 0 Value

Year 0 Value is a reference point in financial analysis indicating the value of an investment or project at the beginning period before any growth or decline.