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

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Variable costs are costs that vary with the volume of production, meaning that the total cost will increase or decrease as production increases or decreases. This includes costs such as raw materials, labor, and utilities, which are directly or nearly directly tied to the level of output. Indirect costs (A) are not directly tied to production levels, while direct costs (B) and fixed costs (D) may not vary with changes in production volume.

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