The Typical Relationship Between Variable Costs and Volume May Be

question 22

Multiple Choice

The typical relationship between variable costs and volume may be described best as follows:

• A) Costs increase in an erratic, unpredictable fashion with changes in volume.
• B) Costs stay fairly constant with changes in volume.
• C) Costs increase with changes in volume up to a certain point and then remain constant.
• D) Costs increase in direct proportion to increases in volume.

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