Variable Costs Are Best Defined As

question 46

Multiple Choice

Variable costs are best defined as:

• A)varying from period to period.
• B)varying directly in proportion to the number of employees.
• C)varying directly in proportion to the level of activity.
• D)varying over time.

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Definitions:

Credit Terms

The conditions under which a seller extends credit to a buyer, including the repayment period and any discount for early payment.

Inventory

The complete list of items such as goods, property, and raw materials a company holds for the purpose of resale or repair.

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer to the seller, typically due to a return or an overcharge.

Gross Profit

Revenue minus the cost of goods sold (COGS), representing the profit a company makes after deducting the costs associated with making and selling its products.