Which of the Following Best Describes the Typical Relationship Between

question 73

Multiple Choice

Which of the following best describes the typical relationship between variable costs and volume?

• A)Total variable costs increase in an erratic,unpredictable fashion with changes in volume.
• B)Total variable costs stay constant with changes in volume.
• C)Unit variable costs increase with changes in volume up to a certain point and then remain constant.
• D)Total variable costs increase in direct proportion to increases in volume.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Market Price

The current rate for transactions involving a service or asset.

Stock Dividend

A stock dividend is a distribution of additional shares of a company's stock to its shareholders instead of cash dividends.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.