Which One of the Following Statements Concerning Variable Costs Is

Multiple Choice

Which one of the following statements concerning variable costs is correct?

A) Variable costs minus fixed costs equal marginal costs.
B) Variable costs are equal to fixed costs when production is equal to zero.
C) An increase in variable costs increases the operating cash flow.
D) Variable costs are inversely related to fixed costs.
E) Variable costs per unit are inversely related to the contribution margin per unit.