Which One of the Following Statements Concerning Variable Costs Is

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 zero when production is equal to zero.
C) An increase in variable costs increases the operating cash flow.
D) Variable costs minus fixed costs equals the contribution margin.
E) Future variable costs are generally known with certainty.

Correct Answer:

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