Variable Costs

question 10

Multiple Choice

Variable costs:

• A) remain constant in total regardless of the level of output.
• B) increase per unit as output increases.
• C) decrease per unit as output decreases.
• D) remain constant per unit regardless of the level of output.

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Definitions:

Suppliers

Entities that provide goods or services to other individuals or organizations, typically for resale or business use.

Federal Income Tax

A tax levied by the United States government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Taxpayers

Individuals or entities that are obligated to pay taxes to government authorities based on earned income, property ownership, or other taxable activities.

Percentage

A proportion or share in relation to a whole, represented as a fraction of 100.