A cost whose total amount changes in direct proportion to a change in volume is a(n) ________ cost.
A) fixed
B) variable
C) mixed
D) irrelevant

Question

Quizplus · Accepted Answer

A cost that changes in direct proportion to a change in volume is a variable cost, as opposed to a fixed cost, which remains the same regardless of volume. A mixed cost includes both fixed and variable components, and an irrelevant cost is not related to the decision being made.

A Cost Whose Total Amount Changes in Direct Proportion to a Change