_____ include(s)direct labor and direct materials as well as other items that go up and down with sales, such as commissions.
A)Expenses
B)Overhead
C)Variable cost
D)Depreciation

Question

Quizplus · Accepted Answer

Variable costs are costs that vary directly with the level of production or sales, such as direct labor, direct materials, and commissions. As sales increase, variable costs increase proportionally, and as sales decrease, variable costs decrease accordingly.

_____ Include(s)direct Labor and Direct Materials as Well as Other