Asked by
Krishna Hindu
on Nov 17, 2024
Verified
Variable costs are costs that vary in total in direct proportion to changes in the activity level.
Variable Costs
Variable costs are expenses that vary directly with the level of production or output, such as materials and labor.
Activity Level
Refers to the volume of production or services performed in a business, which can significantly influence costs and profitability.
- Master the distinctions between variable, fixed, and mixed expenditures.
Verified Answer
TB
Learning Objectives
- Master the distinctions between variable, fixed, and mixed expenditures.
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