Any Cost That Varies in Proportion to a Business Activity

question 49

Multiple Choice

Any cost that varies in proportion to a business activity is a

• A)Fixed cost.
• B)Variable cost.
• C)Mixed cost.
• D)Step cost.

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Definitions:

State Would Wither Away

A Marxist theory suggesting that after the establishment of a classless society, the need for a government or state will diminish and eventually disappear.

Capitalists

Individuals or entities that own capital goods or investments and use them to generate wealth through production, distribution, and the sale of goods and services.

Embraced Capitalism

The process of adopting capitalist economics and practices, characterized by private ownership, profit motive, and market competition.

Central Planning

An economic system where the government makes all decisions on the production and distribution of goods and services, aiming to control the economy.