If Production Increases by 30%, How Will Total Variable Costs

question 243

Multiple Choice

If production increases by 30%, how will total variable costs likely react?

• A)Increase by 15%
• B)Decrease by 30%
• C)Increase by 30%
• D)Remain the same

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Definitions:

Payables

Amounts owed by a company to suppliers or creditors for goods and services received.

Inventory

The raw materials, work-in-progress products, and completely finished goods that are considered to be the portion of a business's assets that is ready or will be ready for sale.

Asynchronization

The lack of synchronization; occurring not simultaneously or at different times or rates.

Financial Planning

Financial planning is the process of creating strategies for managing financial affairs and meeting life goals through the proper management of finances.