Which of the Following Statements Is True for a Firm

question 45

Multiple Choice

Which of the following statements is true for a firm that uses variable costing?

• A) The unit product cost changes as a result of changes in the number of units manufactured.
• B) Both variable selling costs and variable production costs are included in the unit product cost.
• C) Operating income moves in the same direction as sales.
• D) Operating income is greatest in periods when production is highest.

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Definitions:

NOW Accounts

Negotiable Order of Withdrawal accounts; interest-earning deposit accounts from which holders can write checks.

Money Supply

The inclusive amount of economic monetary assets present at a particular instance in an economy.

Credit Card

A payment card issued to users as a method of payment, allowing the cardholder to pay for goods and services based on the cardholder's promise to pay for them.

Personal Check

A personal check is a paper instrument that allows individuals to transfer money from their bank account to another person or entity.