Which Relationship Is Characteristic of Per-Unit Variable Costs

question 196

Multiple Choice

Which relationship is characteristic of per-unit variable costs?

• A)increase as output decreases
• B)increase as output increases
• C)decrease as output decreases
• D)remain constant within the relevant range

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Quality Of Income Ratio

The quality of income ratio measures the proportion of income that has been realized in cash or is easily convertible into cash, indicating the company's earnings sustainability.

Cash Payment

A payment made in currency notes or coins as opposed to checks or electronic transfers.

Cash Dividend

This form of profit distribution by companies involves transferring cash to shareholders, typically determined by the board of directors.