When Cost Relationships Are Linear,total Variable Prime Costs Will Vary

question 60

Multiple Choice

When cost relationships are linear,total variable prime costs will vary in proportion to changes in

• A)direct labor hours.
• B)total material cost.
• C)total overhead cost.
• D)production volume.

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Definitions:

Cent

A monetary unit in various countries, equal to one-hundredth of the base unit of currency.

Accurate

Without faults or inaccuracies; meticulously exact and accurate in every detail.

Accurate

The quality of being correct or precise.

Cent

A monetary unit worth one-hundredth of various currencies, including the US dollar and the Euro.