Q49
Variable cost in an organization
A.
be fixed according to the rate of growth
B.
changes with the volume of production
AnswerC.
does not change with volume of production
D.
remains constant
Answer: Option B
Solution
Answer: Option B
Solution:
Variable cost in an organization changes with the volume of production. A variable cost is a cost that changes in relation to variations in an activity. In a business, the "activity" is frequently production volume, with sales volume being another likely triggering event.