____ are costs that change in total when production volume increases or decreases within the relevant range.
A) Variable costs
B) Facility-level costs
C) Fixed costs
D) Period costs

Question

Quizplus · Accepted Answer

Variable costs are directly related to production volume and change proportionately with the level of production activity within the relevant range. Examples of variable costs include direct materials, direct labor, and variable overhead costs. Facility-level costs (B) and fixed costs (C) do not change with changes in production volume within the relevant range. Period costs (D) are not directly related to production volume and are incurred over a specific period of time.

____ Are Costs That Change in Total When Production Volume