What Is the Relationship Between Total Variable Costs and Output

question 146

Multiple Choice

What is the relationship between total variable costs and output?

• A)Total variable costs stay the same as output changes.
• B)Total variable costs increase as output decreases.
• C)Total variable costs decrease as output increases.
• D)Total variable costs equal variable rate × amount of output.

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Definitions:

Machinery

Equipment consisting of complex systems and components used in industrial operations or manufacturing processes.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Machinery

Industrial or commercial equipment and devices designed for specific tasks, contributing to the production or service capabilities of a business.

Cash Flow

The total amount of money being transferred into and out of a business, measuring liquidity, financial flexibility, and overall financial health.