Which of the following costs changes in total in direct proportion to a change in volume?
A) fixed cost
B) variable cost
C) mixed cost
D) period cost

Question

Quizplus · Accepted Answer

Variable costs change proportionally with changes in volume. As volume increases, variable costs also increase, and as volume decreases, variable costs also decrease. Fixed costs (A) remain constant regardless of changes in volume, while mixed costs (C) change but not in direct proportion to changes in volume as they contain both fixed and variable components. Period costs (D) are not related to changes in volume but are expensed in the period in which they are incurred.

Which of the Following Costs Changes in Total in Direct