Total variable costs change proportionately with changes in output activity.

Name: Total variable costs change proportionately with changes in output activity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Total variable costs are those costs that change directly and proportionately with changes in output activity. As the level of output increases, the total variable costs also increase and as the level of output decreases, the total variable costs also decrease. Therefore, the statement is true.

Total Variable Costs Change Proportionately with Changes in Output Activity