A cost that changes with volume, but not at a constant rate, is called a:
A) Variable cost.
B) Curvilinear cost.
C) Step-wise variable cost.
D) Fixed cost.
E) Differential cost.

Question

Quizplus · Accepted Answer

A cost that changes with volume, but not at a constant rate, is known as a curvilinear cost. This cost is best represented by a curved line on a graph, as opposed to a straight line for a variable cost or a horizontal line for a fixed cost. Step-wise variable costs refer to costs that increase in steps as volume increases, while differential costs refer to costs that differ between alternatives.

A Cost That Changes with Volume, but Not at a Constant