Variable Costs Are Described by Which of the Following Statements

question 180

Multiple Choice

Variable costs are described by which of the following statements?

• A)They vary per unit of output.
• B)They are fixed in total.
• C)They are fixed per unit and vary in total.
• D)They decrease per unit as production volume increases.

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Business Model

A strategic plan outlining how a company creates, delivers, and captures value, essentially explaining how it operates and makes money.

Work in Progress

This term indicates ongoing projects or tasks that are currently under development and not yet complete.

Business Plan

A detailed document outlining the strategy, goals, financial projections, and operational guidelines for a business.