Vidyalelo
Commerce · Q133

Costing

Graduate and Post Graduate · Commerce · question 133

Q133

Increase in total variable cost is due to ________.

A.
increase in fixed cost
B.
increase in sales
C.
increase in production
Answer
D.
increase in efficiency

Answer: Option C

Solution

Answer: Option C
Solution:
Increase in total variable cost is due to increase in production. Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases.