A Cost That Varies Proportionately with Increases in Activity Is

question 27

Multiple Choice

A cost that varies proportionately with increases in activity is called:

• A) a variable cost.
• B) a fixed cost.
• C) a semi-variable cost.
• D) none of the above.

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Definitions:

Specialize

The process of focusing effort and resources on a narrow area of activity or field of study to gain efficiency or expertise.

Production Possibilities

A graphical representation showing the maximum quantity of goods and services that can be produced using limited resources to the fullest extent.

Opportunity Cost

The act of losing potential gains available through other choices upon selecting one option.

Rancher

A person who owns or manages a ranch, where livestock such as cattle or sheep are raised for meat or wool.