Variable costs:
A)are always indirect costs
B)increase in total when the actual level of activity increases
C)include most personnel costs and depreciation on machinery
D)can always be traced directly to the cost object

Question

Quizplus · Accepted Answer

Variable costs increase in total when the actual level of activity increases. This means that as more units are produced, more variable costs are incurred. Options A, C and D are incorrect as they do not accurately describe variable costs.

Variable Costs