A semivariable cost:
A)Increases and decreases directly and proportionately with changes in volume.
B)Changes in response to a change in volume,but not proportionately.
C)Increases if volume increases,but remains constant if volume decreases.
D)Changes inversely in response to a change in volume.

Question

Quizplus · Accepted Answer

A semivariable cost changes in response to a change in volume but not proportionately. This means that there is a fixed component to the cost, but as volume increases or decreases, the variable component also changes.

A Semivariable Cost