Costs That Rise and Fall Proportionately with the Volume of Output

question 11

Multiple Choice

Costs that rise and fall proportionately with the volume of output are often referred to as:

• A)Variable costs.
• B)Flexible costs.
• C)Idle capacity costs.
• D)Uncontrollable costs.

---

Definitions:

Controllable Costs

Expenses that can be directly controlled or influenced by a manager or decision-maker in the short term.

Common Costs

Expenses that cannot be directly attributed to a specific product or service but are shared among several projects or business units.

Strategic Business Unit

A division or unit within a company that has its own mission, objectives, and competitors, and is managed independently.

Revenue Centre

A segment or area of a business responsible for generating sales and revenue, without direct responsibility for profit or cost.