Variable costs change in total direct proportion to a change in the activity of a cost driver.

Name: Variable costs change in total direct proportion to a change in the activity of a cost driver.
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Question

Quizplus · Accepted Answer

Variable costs vary directly with the level of production or other activity, meaning they increase as production increases and decrease as production decreases, in direct proportion to changes in the activity level of the cost driver.

Variable Costs Change in Total Direct Proportion to a Change