Costs That Change in Direct Proportion to Sales Are Known

question 95

Multiple Choice

Costs that change in direct proportion to sales are known as

• A) Fixed costs
• B) Variable costs
• C) The breakeven point
• D) Asset costs

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Definitions:

Cost Per Minute

A metric used to calculate the expense incurred for every minute of operation, often in manufacturing or services.

Customer Cost Analysis

The process of analyzing and evaluating the costs associated with acquiring and retaining customers, often used to inform pricing and marketing strategies.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products or services based on the actual amount of time they consume, using an hourly cost rate.

Tech Support Department

A segment within a company that handles technical queries and issues faced by users of its products or services.