A(n)________ Cost Is a Cost Whose Total Amount Changes in Direct

question 184

Multiple Choice

A(n) ________ cost is a cost whose total amount changes in direct proportion to a change in volume.

• A)variable
• B)fixed
• C)mixed
• D)irrelevant

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Definitions:

Proportional

A relationship between two quantities where the ratio remains constant.

Payroll Taxes

Charges assessed on employers and their workers, based on a percentage of the compensation paid to employees.

Worker

An individual who performs services or labor, usually in exchange for compensation, within an economy.

Employer

An individual or organization that hires and pays people to perform specific jobs.