Which of the following best describes the typical relationship between variable costs and volume?
A)Total variable costs increase in an erratic,unpredictable fashion with changes in volume.
B)Total variable costs stay constant with changes in volume.
C)Unit variable costs increase with changes in volume up to a certain point and then remain constant.
D)Total variable costs increase in direct proportion to increases in volume.

Question

Quizplus · Accepted Answer

The typical relationship between variable costs and volume is that total variable costs increase in direct proportion to increases in volume. This is because variable costs are directly tied to the level of production or sales, such as the cost of raw materials or labor needed to produce goods or services. As production increases, so do variable costs.

Which of the Following Best Describes the Typical Relationship Between