Variable Costs Are Costs That Vary in Total in Direct

question 65

True/False

Variable costs are costs that vary in total in direct proportion to changes in the activity level.

---

Definitions:

Nontransferable

A characteristic of certain rights or privileges that cannot be legally transferred from one individual or entity to another.

Economic Profit

Economic profit is a measure of performance that includes opportunity costs in addition to traditional accounting profits.

Accounting Costs

Refers to expenses directly tied to the production of goods or services, such as labor, materials, and overhead costs.

Total Revenue

The overall amount of money generated by a business from its activities, typically from sales of goods or services before any expenses are deducted.