Which Statement Is True Concerning Semi-Variable Costs

question 90

Multiple Choice

Which statement is true concerning semi-variable costs?

• A)Semi-variable costs contain both fixed and random components.
• B)Semi-variable costs contain both random and variable components.
• C)Semi-variable costs contain both fixed and variable components.
• D)Semi-variable costs contain either fixed or variable components.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim on the company's resources.

Revenues

The total income generated by a company from its business activities, typically from the sale of goods or services before any expenses are subtracted.

Expenses

Outflows of resources or incurrences of liabilities that a company undergoes as part of its operations to generate revenue.

Drawings

It refers to the amount of money or the value of goods taken from the business by the owner for personal use.