Which of the Following Costs Changes in Total in Direct

question 129

Multiple Choice

Which of the following costs changes in total in direct proportion to a change in volume?

• A)Fixed cost
• B)Variable cost
• C)Mixed cost
• D)Period cost

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Definitions:

Cost-Volume-Profit Analyses

A financial analysis tool that helps determine how changes in cost and volume affect a company's operating profit.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating the contribution towards covering fixed costs and profit.

Sales Volume

The total number of units of product sold in a particular period.

Contribution Format

An income statement layout that segregates fixed costs from variable costs, thus highlighting the contribution margin.