Costs that vary in total in direct proportion to changes in an activity level are called


Costs that vary in total in direct proportion to changes in an activity level are called fixed costs sunk costs O variable co

Answer

Cost that vary in total in direct proportion to changes in activity level are called variable costs.

Variable cost is the cost that changes with the level of production. For example raw material.

To produce 100 cars we may need 100 engines and the total cost of engine will increase with the level of production of cars.

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