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A cost that changes in total as output changes is a variable cost. a. True b. False

User Linqu
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6 votes

Answer:

a. True

Explanation:

a. True

A cost that changes in total as output changes is indeed a variable cost. Variable costs are expenses that vary in direct proportion to the level of production or business activity. As output increases, variable costs increase, and as output decreases, variable costs decrease. Examples of variable costs include direct labor, raw materials, and sales commissions.

User Saurabh Yadav
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