Which of the Following Costs Changes in Direct Proportion to a Change

question 20

Multiple Choice

Which of the following costs changes in direct proportion to a change in the activity level?

• A) Variable cost.
• B) Fixed cost.
• C) Semivariable cost.
• D) Step-variable cost.
• E) Step-fixed cost.

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Definitions:

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a lesser opportunity cost compared to its rivals.

Adam Smith

A Scottish economist and philosopher, known as the "father of modern economics" for his influential works on the nature and causes of the wealth of nations, promoting the idea of free market economies.