Any cost that varies in proportion to a business activity is a
A)fixed cost.
B)variable cost.
C)mixed cost.
D)step cost.

Name: Any cost that varies in proportion to a business activity is a A)fixed cost. B)variable cost. C)mixed cost. D)step cost.
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Question

Quizplus · Accepted Answer

A variable cost is a cost that varies in proportion to a business activity. This means that as the level of activity increases, the variable cost will also increase. Examples of variable costs include direct materials, direct labor, and sales commissions.

Any Cost That Varies in Proportion to a Business Activity