If You Find Yourself in a Credit Hole, Only Make

question 70

True/False

If you find yourself in a credit hole, only make the minimum monthly payment until you are out of debt.

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Definitions:

Variable Cost

Costs that change in proportion to the level of goods or services a company produces.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.

Net Income

The net income of a company, calculated by deducting all costs, taxes, and expenses from its total revenue.

Accounting Break-even

The point at which a company's total sales equal its expenses, thus resulting in neither profit nor loss, based strictly on accounting figures not considering cash flow.