A cost that moves in direct proportion to the level of activity is a:

Question

Accepted Answer

C. Variable cost

1. More activity means more cost.
2. The relationship is proportional.
3. It is a variable cost.
_Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._

Answer

Sunken cost

Answer

Fixed outlay

Answer

Committed cost

A cost that moves in direct proportion to the level of activity is a:

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