Variable costs:
A)change in direct proportion to output or activity levels
B)change in indirect proportion to output or activity levels
C)change in direct proportion to expense levels
D)change in indirect proportion to expense levels

Question

Quizplus · Accepted Answer

Variable costs are expenses that change in direct proportion to the level of output or activity. This means that the higher the level of output or activity, the higher the variable costs will be. Examples of variable costs include direct materials, direct labor, and commissions.

Variable Costs