A Variable Cost Is One That Decreases in Total as Output

question 213

True/False

A variable cost is one that decreases in total as output increases and increases in total as output decreases.

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Definitions:

Note Receivable

An asset account representing amounts owed to a company by customers or others who have signed promissory notes in favor of the company.

Interest Income

Revenue earned by lending funds or through investment securities that pay interest.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.

Note Payable

A financial obligation represented by a written promise to pay a specified amount of money, plus interest, by a certain date or on demand.