total variable costs change in proportion to changes in volume of activity. true or false true false
total variable costs change in proportion to changes in volume of activity. true or false true false
Answer
Brief Explanations:
Variable costs are costs that vary with the level of production or activity. By definition, total variable costs change proportionally with changes in the volume of activity. For example, if the cost of raw materials (a variable cost) is $5 per unit produced, then if 10 units are produced, total variable cost for raw materials is $50; if 20 units are produced, it is $100.
Answer:
True