When cost relationships are linear,total variable prime costs will vary in proportion to changes in
A)direct labor hours.
B)total material cost.
C)total overhead cost.
D)production volume.

Question

Quizplus · Accepted Answer

When cost relationships are linear, total variable prime costs will vary in proportion to changes in production volume. This means that as production volume increases or decreases, the total variable prime costs will also increase or decrease in the same proportion.

When Cost Relationships Are Linear,total Variable Prime Costs Will Vary