In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels.

Name: In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels.
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In cost-volume analysis, costs that vary directly with volume of output are referred to as variable costs, not fixed costs. Fixed costs do not vary with the level of output.

In Cost-Volume Analysis, Costs That Vary Directly with Volume of Output