A Variable Cost Is One That Changes

question 113

Multiple Choice

A variable cost is one that changes

• A)in the long run only
• B)in the short run only
• C)year to year
• D)month to month
• E)as output changes

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Definitions:

Market Price

The rate at present for engaging in buy or sell activities for a service or asset.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before dividends to common stockholders.

Preemptive Rights

A shareholder's right to buy new shares issued by a company in proportion to their existing shareholding, before the shares are offered to the public.

Stock Purchase

The act of buying shares in a company, giving the purchaser a portion of ownership in that company.