Costs which, in total, vary directly or nearly directly with the volume of production are known as:

Question

Quizplus · Accepted Answer

Variable costs vary directly or nearly directly with the volume of production. Direct costs specifically refer to costs that are easily traced and assigned to a specific product or activity. Indirect costs refer to costs that cannot be easily traced or assigned to a specific product or activity. Fixed costs remain unchanged regardless of the volume of production. Therefore, the best choice is C, variable costs.

Costs Which, in Total, Vary Directly or Nearly Directly with the Volume