Because the variable costs are directly and causally linked to usage, charging them as a function of the actual usage is appropriate.

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Quizplus · Accepted Answer

This statement is true. Variable costs are expenses that fluctuate with the level of usage or production. Thus, it is appropriate to charge them based on the actual usage or production level. This way, the company can ensure that customers or users are paying for the resources they consume, and the company can also accurately track the costs associated with each unit of usage or production.

Because the Variable Costs Are Directly and Causally Linked to Usage