Variable costs are costs that:
A) vary inversely with changes in activity.
B) vary directly with changes in activity.
C) remain constant as activity changes.
D) decrease on a per-unit basis as activity increases.
E) increase on a per-unit basis as activity increases.

Question

Quizplus · Accepted Answer

Variable costs vary directly with changes in activity, meaning they increase as activity increases and decrease as activity decreases.

Variable Costs Are Costs That