Total Variable Costs

question 68

Multiple Choice

Total variable costs:

• A) are costs associated with short-run fixed capital.
• B) are so named because they vary from firm to firm within an industry.
• C) increase as production increases.
• D) decrease as production increases.

---

Definitions:

Statement of Income

A financial document that provides a summary of a company's revenues, expenses, and net income over a specific period.

Statement of Financial Position

A financial statement that details a company's assets, liabilities, and shareholders' equity at a specific point in time.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, as opposed to when they are incurred.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations and external investment sources.