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Which describes the typical relationship between variable costs and volume? a. T

ID: 2493220 • Letter: W

Question

Which describes the typical relationship between variable costs and volume? a. Total variable costs increase in an erratic, unpredictable fashion with changes in volume. b. Total variable costs stay constant with changes in volume. c. Unit variable costs increase with changes in volume up to a certain point and then remain constant. d. Total variable costs increase in direct proportion to increases in volume. Which describes the typical relationship between variable costs and volume? a. Total variable costs increase in an erratic, unpredictable fashion with changes in volume. b. Total variable costs stay constant with changes in volume. c. Unit variable costs increase with changes in volume up to a certain point and then remain constant. d. Total variable costs increase in direct proportion to increases in volume.

Explanation / Answer

Total variable costs increase in direct proportion to increase in volume

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