A(n)________ cost is a cost whose total amount changes in direct proportion to a change in volume.
A)variable
B)fixed
C)mixed
D)irrelevant

Question

Quizplus · Accepted Answer

A variable cost changes in direct proportion to changes in activity level. As the activity level increases, the total amount of variable costs also increases. Examples of variable costs include direct materials, direct labor, and sales commissions.

A(n)________ Cost Is a Cost Whose Total Amount Changes in Direct