Total variable costs ________. a. remain constant over a wide range of volume b. are fixed over a small range of activity and then jump to a new fixed level with small changes in volume c. vary in direct proportion to changes in volume d. graphs slope upward but do not begin at the origin and intersect the y-axis at the level fixed cost

Respuesta :

Answer:

C) vary in direct proportion to changes in volume

Explanation:

Total variable costs represent the total costs of a company that change as the output level changes.

Generally speaking, total variable production costs include direct labor and direct materials. Sometimes even overhead costs (costs not directly related to the production of the goods) will also vary as output level varies.

There are also variable sales and administrative costs that vary as the number of distributed and sold goods changes.