Select the best description for the following:
-($40,000 − $30,000)/(3,000 − 2,500)
A)Fixed cost
B)Variable cost
C)Dependent variable
D)Independent variable
E)Variable rate
F)Cost equation

Question

Quizplus · Accepted Answer

This expression calculates the change in cost ($10,000) divided by the change in some quantity (500), which is the definition of a variable rate. It shows how much the cost changes per unit of the quantity change.

Select the Best Description for the Following