Costs that change in total as the level of activity changes are which of the following?
A)direct costs.
B)indirect costs.
C)variable costs.
D)fixed costs.

Question

Quizplus · Accepted Answer

Variable costs are costs that change in total as the level of activity changes. This means that as production or sales increase, the total amount spent on variable costs will also increase, and vice versa. Direct costs are costs that can be directly traced to a particular product or service, while indirect costs are costs that cannot be directly traced to a particular product or service. Fixed costs, on the other hand, remain constant in total regardless of changes in activity level.

Costs That Change in Total as the Level of Activity