A Variable Cost Is a Cost That

question 12

Multiple Choice

A variable cost is a cost that

• A)may or may not be incurred depending on management's discretion.
• B)occurs at various times of the year.
• C)varies with changes in activity.
• D)all of the options are correct

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Definitions:

Pension Expense

The cost recognized by an employer for contributions to a defined benefit pension plan based on formulas that factor in salary, years of service, and other elements.

Expected Earnings

The forecasted profit or loss for a company or investment, often used in the valuation of companies.

Pension Expense

The cost recognized in an accounting period related to the provision of pension benefits to employees.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.