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What is the correct meaning of variable cost?

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Answer and explanation

Correct answer: जो उत्पादन या बिक्री के साथ बदलती है

A variable cost changes in total as the level of production or sales changes, although the cost per unit may be fairly stable over a relevant range. Raw materials, sales-linked packaging, and some delivery expenses are common examples. A cost is not variable because it comes from a bank or because it is unrecorded. Therefore, option A gives the correct definition.

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variable-costbusiness-financeConceptnature and importance of business financeconcept nature and importance of business financeSources of Business FinanceBusiness StudiesClass 11 MCQ

Frequently asked questions

What is the correct answer to this question?

जो उत्पादन या बिक्री के साथ बदलती है

Why is this the correct answer?

A variable cost changes in total as the level of production or sales changes, although the cost per unit may be fairly stable over a relevant range. Raw materials, sales-linked packaging, and some delivery expenses are common examples. A cost is not variable because it comes from a bank or because it is unrecorded. Therefore, option A gives the correct definition.

Which subject and chapter does this question cover?

This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.

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