A(n) ________ cost is one whose total amount changes in direct proportion to a change in volume.
A) fixed
B) irrelevant
C) mixed
D) variable

Question

Quizplus · Accepted Answer

A variable cost is directly proportional to changes in volume or activity, meaning it increases or decreases as the company produces or sells more or less. Examples of variable costs include raw materials, direct labor, and sales commissions.

A(n) ________ Cost Is One Whose Total Amount Changes in Direct