Which One of the Following Statements Concerning Variable Costs Is

question 65

Multiple Choice

Which one of the following statements concerning variable costs is correct?

• A)Variable costs minus fixed costs equal marginal costs.
• B)Variable costs are equal to zero when production is equal to zero.
• C)An increase in variable costs increases the operating cash flow.
• D)Variable costs minus fixed costs equals the contribution margin.
• E)Future variable costs are generally know with certainty.

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Definitions:

Diagnosis

The identification of the nature and cause of a certain phenomenon, especially diseases, through examination of the symptoms.

Prognosis

A prediction of the likely outcome or course of a disease, considering various factors like the individual's condition and treatment options.

Etiology

The study of the causes or origins of diseases and medical conditions.

Overdiagnosis

The diagnosis of a disease or condition that is unlikely to cause harm or symptoms, often leading to unnecessary treatment.