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Commerce · Q323

Costing

Graduate and Post Graduate · Commerce · question 323

Q323

Cost which is changed in proportion to level total volume is

A.
fixed cost
B.
variable cost
Answer
C.
total cost
D.
infeasible cost

Answer: Option B

Solution

Answer: Option B
Solution:
Cost which is changed in proportion to level total volume is variable cost. Variable costs are costs that change as the quantity of the good or service that a business produces changes.