Expenses or costs that vary directly with revenues are said to be:
A)fixed expenses
B)semifixed expenses
C)semivariable expenses
D)variable expenses

Question

Quizplus · Accepted Answer

Expenses that vary directly with revenues are called variable expenses because they change in proportion to changes in revenue. As revenue increases, variable expenses increase, and as revenue decreases, variable expenses decrease. Fixed expenses are expenses that do not vary with changes in revenue, such as rent or salaries. Semifixed expenses and semivariable expenses are terms used interchangeably to describe expenses that have a fixed component and a variable component.

Expenses or Costs That Vary Directly with Revenues Are Said