A cost that changes in total as the level of activity changes is known as which of the following?
A)fixed cost.
B)direct cost.
C)indirect cost.
D)variable cost.

Question

Quizplus · Accepted Answer

Variable costs are costs that change in total as the level of activity changes. These costs are often associated with the production of a product or service, and they can include direct material costs, direct labor costs, and variable manufacturing overhead costs. As the level of production increases, the total cost of variable costs also increases.

A Cost That Changes in Total as the Level of Activity