The cost which varies proportionate to increase in production is …….. cost

Question

Quizplus · Accepted Answer

Variable costs change in proportion to the level of production. This means that as production increases, variable costs increase, and as production decreases, variable costs decrease. Fixed costs remain the same regardless of production levels, semi-variable costs have both fixed and variable components, and break-even cost is a point where total costs and total revenue are equal, not a type of cost.

The Cost Which Varies Proportionate to Increase in Production Is