Asked by Austin Deaver on May 05, 2024
Verified
Costs that vary in total in direct proportion to changes in an activity level are called
A) fixed costs
B) sunk costs
C) variable costs
D) differential costs
Variable Costs
Costs that change in proportion to the level of production or sales, such as raw materials and direct labor.
- Discern and understand the different categories of costs, such as variable, fixed, and mixed.
- Discern between variable and fixed expenditures by understanding their behavioral differences.
Verified Answer
KP
Karema PerryMay 11, 2024
Final Answer :
C
Explanation :
Variable costs vary in proportion to changes in an activity level.
Learning Objectives
- Discern and understand the different categories of costs, such as variable, fixed, and mixed.
- Discern between variable and fixed expenditures by understanding their behavioral differences.