Which of the following costs changes in direct proportion to a change in the activity level?
A)Variable cost.
B)Fixed cost.
C)Semivariable cost.
D)Step-variable cost.
E)Step-ﬁxed cost.

Question

Quizplus · Accepted Answer

Variable costs change in direct proportion to a change in the activity level. This means that as the level of activity increases, the cost of producing a good or service also increases. Examples of variable costs include direct materials, direct labor, and sales commissions.

Which of the Following Costs Changes in Direct Proportion to a Change