Asked by
Meike Lageveen
on Nov 12, 2024
Verified
Variable costs are costs that vary in total in direct proportion to changes in the activity level.
Variable Costs
Expenses that fluctuate in proportion to the activity of a business.
Activity Level
A measure of the volume of production or operations, often influencing costs and revenues in a business.
- Discern and define the concepts of variable, fixed, and mixed costs.
- Analyze the distinction between unit-specific variable costs and total costs that adjust with activity levels.
Verified Answer
DO
Learning Objectives
- Discern and define the concepts of variable, fixed, and mixed costs.
- Analyze the distinction between unit-specific variable costs and total costs that adjust with activity levels.