Which of the following best describes a variable cost? A cost that: a. Represents a fixed proportion of total costs b. Has a direct relationship with output c. Is sometimes also known as an indirect cos d. Falls on average, as output increases.

Principles of Accounting Volume 2
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Chapter2: Building Blocks Of Managerial Accounting
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Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...
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Which of the following best describes a variable cost? A cost that:

a. Represents a fixed proportion of total costs

b. Has a direct relationship with output
c. Is sometimes also known as an indirect cos

d. Falls on average, as output increases.

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