a cost that changes in total in proportion to changes in volume of activity is a(n):\nmultiple…

a cost that changes in total in proportion to changes in volume of activity is a(n):\nmultiple choice\ndifferential cost.\nfixed cost.\nincremental cost.\nvariable cost.\nproduct cost.

a cost that changes in total in proportion to changes in volume of activity is a(n):\nmultiple choice\ndifferential cost.\nfixed cost.\nincremental cost.\nvariable cost.\nproduct cost.

Answer

Brief Explanations:

  • Differential cost: The difference in cost between two alternatives.
  • Fixed cost: Remains constant in total regardless of activity volume changes.
  • Incremental cost: The additional cost from a one - unit increase in activity.
  • Variable cost: Changes in total proportionally with activity volume changes.
  • Product cost: Costs related to manufacturing a product.

Answer:

Variable cost.