The sum of those changing expenses which are closely related to output is called:
A) total fixed cost.
B) total cost.
C) total overhead cost.
D) total variable cost.
E) None of these is a good answer.

Question

Quizplus · Accepted Answer

The sum of changing expenses which are closely related to output is known as total variable cost. Fixed costs are those costs that do not vary with output, overhead costs are indirect costs, and total cost includes both fixed and variable costs. Therefore, the correct choice is D) total variable cost.

The Sum of Those Changing Expenses Which Are Closely Related