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5 votes
Within a relevant range, costs that increase in direct

proportion to volume are"?
variable costs
fixed costs
mixed costs
step costs

User BARJ
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1 Answer

3 votes

Final answer:

Variable costs increase in direct proportion to volume, while fixed costs remain constant. Mixed costs combine both variable and fixed costs. Hence, the correct answer is option (1).

Step-by-step explanation:

Variable costs are the costs that increase in direct proportion to volume. These costs are incurred when producing a greater quantity of a good or service, such as labor and raw materials. They vary with the level of production and are usually represented as a per unit cost.

Fixed costs, on the other hand, do not change with the level of production and remain constant. Examples of fixed costs include rent for a factory or retail space. These costs are incurred regardless of the volume of output.

Mixed costs are a combination of variable and fixed costs. They consist of both costs that vary with production and costs that remain constant.

User Xonegirlz
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