A Cost That Changes in Total in Direct Proportion to a Change

question 46

Multiple Choice

A cost that changes in total in direct proportion to a change in the cost driver is a:

• A) variable cost.
• B) fixed cost.
• C) semivariable cost.
• D) step-variable cost.

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Definitions:

Conditional Probability

The conditional probability of an event happening after it's established that another event has occurred.

P(B|A)

The likelihood that event B happens after event A has already taken place.

Mutually Exclusive

Two events that cannot happen at the same time, meaning the occurrence of one event means the other cannot occur.

P(A)

The probability of an event A occurring in a given statistical experiment or context.