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Refer to the graph.The movement from line A to line A' represents a change in:
Mixed Cost
An expense that contains both fixed and variable components, changing with the level of output but also incurred when there is no output.
Variable Costs
Costs that change in proportion to the level of production or sales activity, such as materials and labor directly involved in a company's product.
Fixed Costs
Expenditures that do not vary with the level of activity or production within a short time frame.
Variable Costs
Expenses that change in proportion to the activity of a business, such as raw materials and direct labor costs.
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