Asked by
Angela Gilani
on Nov 30, 2024
Verified
Statement I: At an output of 0,variable cost is always 0.
Statement II: Total cost less fixed cost equals variable cost.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Variable Cost
Expenses that vary directly with the volume of products or services a company generates.
Total Cost
Represents the complete sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.
- Acquire knowledge about the crucial impact and importance of fixed and variable expenditures within business operations.
- Learn the dynamics of total, fixed, and variable costs and their effect on the strategic decisions of a business.
Verified Answer
TK
Learning Objectives
- Acquire knowledge about the crucial impact and importance of fixed and variable expenditures within business operations.
- Learn the dynamics of total, fixed, and variable costs and their effect on the strategic decisions of a business.