Marginal Cost Is Essentially Variable Cost Because Fixed Costs Do

question 46

True/False

Marginal cost is essentially variable cost because fixed costs do not change in total.

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Definitions:

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Cash in Hand

The amount of cash a company or individual possesses that is readily available for use.

Inventories

The complete list of items such as products, goods in production, or materials that a company holds, intended for sale or use in the production process.

Current Liabilities

Short-term financial obligations that are due within one fiscal year or the operating cycle of a business, whichever is longer.