Variable costs are
A)costs that stay the same,in total,regardless of activity level.
B)costs that vary inversely,per unit,with the number of units produced.
C)costs that vary inversely,in total,with the number of units produced.
D)costs that change,in total,in direct proportion to changes in activity levels.

Question

Quizplus · Accepted Answer

Variable costs are costs that change, in total, in direct proportion to changes in activity levels. As activity levels increase, variable costs will also increase in total, and vice versa.

Variable Costs Are