An Example of a Cost That Is Variable with Respect

question 84

Multiple Choice

An example of a cost that is variable with respect to the number of units produced and sold is:

• A) insurance on the headquarters building.
• B) power to run production equipment.
• C) supervisory salaries.
• D) depreciation of factory facilities.

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Definitions:

Dividends Payable

The amount of declared dividends that a company owes to its shareholders but has not yet paid.

P/E

Price-to-Earnings Ratio, a valuation metric used to measure a company's current share price relative to its per-share earnings.

Closing Price

The final price at which a security is traded on a given trading day.

Net Change

The difference in value or quantity of a financial instrument or index from the previous trading day's close to the current day's close.