Which of the Following Statements Is True Regarding Fixed and Variable

question 102

Multiple Choice

Which of the following statements is true regarding fixed and variable costs?

• A) Both costs are constant when considered on a total basis.
• B) Variable costs are constant in total, and fixed costs are constant per unit.
• C) Both costs are constant when considered on a per unit basis.
• D) Fixed costs are constant in total, and variable costs are constant per unit.

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Definitions:

Cash Inflows

Money or other forms of financial assets that come into a company, typically as a result of its business operations or investments.

Cost of Capital

It represents the expense for an organization to fund its operations and investments, typically expressed as a rate of return that the company must achieve to maintain its market value.

Net Cash Flows

The amount of cash generated or lost over a period, considering all cash inflows and outflows.

Clam Digger

An individual who engages in the activity of harvesting clams from their natural habitats, typically in coastal areas.