What is a variable cost at an equestrian facility?
A) salary of the farm manager
B) cost of registration forms
C) salary of the horse trainer
D) rent on the buildings
What is the relationship between total variable costs and output?
A) Total variable costs stay the same as output changes.
B) Total variable costs increase as output decreases.
C) Total variable costs decrease as output increases.
D) Total variable costs equal variable rate × amount of output.
Which relationship is characteristic of per-unit variable costs?
A) increase as output decreases
B) increase as output increases
C) decrease as output decreases
D) remain constant within the relevant range
Suppose the cost formula for monthly depreciation cost in a factory is as follows: Total cost = $20,000
Which type of cost does this formula represent?
A) a variable cost
B) a fixed cost
C) a mixed cost
D) a step cost