A(n)________ Cost Is a Cost Whose Total Amount Changes in Direct

question 184

Multiple Choice

A(n) ________ cost is a cost whose total amount changes in direct proportion to a change in volume.

• A)variable
• B)fixed
• C)mixed
• D)irrelevant

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Definitions:

Minimum Required Rate

The lowest return acceptable on an investment, reflecting the investor's risk appetite and cost of capital.

Net Operating Income

A rephrased description: Operating profit after deducting operating expenses but before interest and taxes.

Operating Assets

Assets that are used by a company in its day-to-day operations to generate revenues, such as buildings, machinery, and equipment.

Minimum Required Rate

The lowest return rate that a project or investment must yield to be considered viable or acceptable.