Costs that vary directly with the level of production are referred to as ________ costs.
A)fixed
B)variable
C)target
D)total
E)unit

Question

Quizplus · Accepted Answer

Costs that vary directly with the level of production are referred to as variable costs. Fixed costs are those that do not vary with the level of production. Target costs are a predetermined cost for a product or service. Total costs are the sum of all fixed and variable costs, and unit costs are the cost per unit of output.

Costs That Vary Directly with the Level of Production Are