A cost that depends on the amount of resource that is used is referred to as a
A)fixed cost.
B)variable cost.
C)direct cost.
D)indirect cost.

Question

Quizplus · Accepted Answer

A variable cost is a cost that varies with the amount of resource used. As the resource usage increases, the cost also increases proportionally. This is in contrast to a fixed cost (A), which does not change with the amount of resource used. Direct costs (C) are costs that are directly attributable to a specific product or service, while indirect costs (D) are costs that cannot be directly tied to a specific product or service.

A Cost That Depends on the Amount of Resource That