Which of the following is best defined as a cost that changes in totalas the level of activity changes?
A)an opportunity cost
B)a fixed cost
C)a variable cost
D)a cost object

Question

Quizplus · Accepted Answer

A variable cost is a cost that changes in total as the level of activity changes. This means that the amount of the cost will vary depending on how much of the activity is being undertaken. For example, the cost of materials used to produce a product is a variable cost because the more products that are produced, the more materials are used, and the total cost of the materials will vary accordingly.

Which of the Following Is Best Defined as a Cost