Asked by Great Amazing on May 09, 2024
Verified
The graph of a variable cost when plotted against its related activity base appears as a
A) circle
B) rectangle
C) straight line
D) curved line
Variable Cost
Spending that rises and falls according to how much is produced or sold, including costs for labor and materials.
- Master the depiction in graphs of diverse cost behaviors, spanning fixed, variable, and mixed costs.
- Perform a precise analysis and comprehension of cost behavior for managerial applications.
Verified Answer
PJ
Priest JenningsMay 14, 2024
Final Answer :
C
Explanation :
Variable costs are directly proportional to the level of activity. Hence, the graph of variable cost plotted against its related activity base appears as a straight line.
Learning Objectives
- Master the depiction in graphs of diverse cost behaviors, spanning fixed, variable, and mixed costs.
- Perform a precise analysis and comprehension of cost behavior for managerial applications.