Total variable costs change in direct proportion to changes in cost drivers.

Name: Total variable costs change in direct proportion to changes in cost drivers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Total variable costs are costs that vary with changes in the level of production or activity. Therefore, they change in direct proportion to changes in the cost drivers, such as the number of units produced, hours of labor, or volume of materials used. This is the defining characteristic of variable costs.

Total Variable Costs Change in Direct Proportion to Changes in Cost