What is the key difference between variable and fixed costs? A. Variable costs remain the same regardless how many units of a product or sold, whereas fixed costs will increase as more units are sold. B. Fixed costs are paid in full using cash, while variable costs are paid in the future using credit. C. Fixed costs remain the same regardless how many units of a product or sold, whereas variable costs will increase as more units are sold. D. Variable costs will be incurred during the current term, and fixed costs are paid in a future period.
What is the key difference between variable and fixed costs? A. Variable costs remain the same regardless how many units of a product or sold, whereas fixed costs will increase as more units are sold. B. Fixed costs are paid in full using cash, while variable costs are paid in the future using credit. C. Fixed costs remain the same regardless how many units of a product or sold, whereas variable costs will increase as more units are sold. D. Variable costs will be incurred during the current term, and fixed costs are paid in a future period.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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What is the key difference between variable and fixed costs?
A. Variable costs remain the same regardless how many units of a product or sold, whereas fixed costs will increase as more units are sold.
B. Fixed costs are paid in full using cash, while variable costs are paid in the future using credit.
C. Fixed costs remain the same regardless how many units of a product or sold, whereas variable costs will increase as more units are sold.
D. Variable costs will be incurred during the current term, and fixed costs are paid in a future period.
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