Which of the following is the term for a cost that changes in total in direct proportion to a change in volume?

Question

Quizplus · Accepted Answer

A cost that changes in direct proportion to a change in volume is known as a variable cost. This means that as the volume of production or sales increases, the cost incurred also increases in proportion to the increase in volume. Therefore, option C is the correct answer. Fixed costs, on the other hand, do not change with changes in volume, while sunk costs are costs that have already been incurred and cannot be recovered. Mixed costs are costs that include both fixed and variable components.

Which of the Following Is the Term for a Cost