Variable Costs ________

question 142

Multiple Choice

Variable costs ________.

• A) are always indirect costs
• B) increase in total when the actual level of activity increases
• C) include most personnel costs and depreciation on machinery
• D) are never considered a part of prime cost

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Definitions:

Average Rate of Return

Calculates the average annual return on an investment over its lifetime, taking into account both the capital gains and any income received from the investment.

Estimated Average Annual Income

An approximation of the amount of money one is expected to earn on average each year, considering various income sources over a specified period.

Average Investment

The mean value of all investments held over a specific period, used to assess overall investment performance.

Estimated Average Annual Income

An approximation of the amount of money an individual or business expects to earn in an average year.