Which of the Following Statements Is True Concerning Variable Costs

question 52

Multiple Choice

Which of the following statements is true concerning variable costs?

• A)Variable costs are likely to respond to the amount of attention devoted to them by a management.
• B)Variable costs are associated with marketing,shipping,warehousing,and billing activities.
• C)Variable costs do not change in total for a given period but decrease on a per unit basis.
• D)Variable costs change in total with changes in production activity.

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Definitions:

Break-even Analysis

A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, marking the point of no profit and no loss.

Cost Control Measures

Strategies and actions implemented by a business to monitor, manage, and minimize expenses to increase profitability.

Improve Control

Enhancing the mechanisms or strategies used to guide or manage operations, activities, or systems towards achieving desired objectives.

Technological Advancements

The introduction of new technologies or the improvement of existing technologies to enhance capabilities and efficiency.