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:

Average Inventory

An accounting measure that calculates the average value of inventory over a certain period of time to help assess inventory levels.

Buying Habits

Patterns or tendencies consumers exhibit when purchasing goods or services, including frequency, timing, and preference.

Direct Disposal Costs

Costs directly associated with the disposal of a fixed asset, including costs to remove, dismantle, and transport the asset.

Lower of Cost

A valuation rule often used in inventory accounting to record the cost of inventory at the lower of its original cost or its current market value.