Which of the following is a characteristic of a variable cost?
A)Variable costs are fixed in total.
B)Variable costs fluctuate in total with production and sales.
C)Variable costs do not change in total over any range.
D)All of the above may be characteristic of a variable cost.

Question

Quizplus · Accepted Answer

Variable costs are directly correlated to production or sales volume, meaning they fluctuate in total as production or sales increase or decrease. Therefore, option B is the only characteristic that accurately describes a variable cost. Option A is incorrect because variable costs are not fixed in total, and option C is incorrect because variable costs can change in total over different ranges of production or sales.

Which of the Following Is a Characteristic of a Variable