Which of the following statements about semivariable costs is not true?
A)They first have to be broken down into their fixed and variable components before they can be used to predict costs at different levels of volume.
B)They are sometimes called mixed costs.
C)They vary in direct proportion to volume changes.
D)They may remain constant over a range of production,then abruptly change.

Question

Quizplus · Accepted Answer

Semivariable costs vary in direct proportion to volume changes AND may remain constant over a range of production, then abruptly change. They do not first have to be broken down into their fixed and variable components before they can be used to predict costs at different levels of volume. Semivariable costs are also sometimes called mixed costs. Therefore, option C is not true.

Which of the Following Statements About Semivariable Costs Is Not