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:

Merchandiser

A person or company involved in the business of purchasing goods and selling them at retail or wholesale.

Net Income

The income a company ultimately makes after all operational costs and taxes are deducted from revenue.

Buying and Selling Merchandise

The process of purchasing goods to resell at a higher price, typically found in retail or wholesale businesses.

Revenue Recognition Rules

guidelines that determine when and how revenue is recognized and recorded in the financial statements.