Which of the following is a characteristic of a variable cost?
A) Variable costs fluctuate in total with production and sales.
B) Variable costs are fixed in total.
C) Variable costs do not change in total over any range.
D) Variable costs per unit change with changes in volume.

Question

Quizplus · Accepted Answer

Variable costs fluctuate in total with production and sales levels, meaning they increase as production increases and decrease as production decreases. This is in contrast to fixed costs, which remain constant regardless of production levels.

Which of the Following Is a Characteristic of a Variable