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Variable Costs

Question 6

Multiple Choice

Variable costs:


A) are subtracted from fixed costs to compute the contribution margin.
B) reflect the change in a variable when one more unit of output is produced.
C) are constant in the short-run regardless of the quantity of output produced.
D) change in direct relationship to the quantity of output produced.
E) form the basis that is used to determine the degree of operating leverage employed by a firm.

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