Which of the following is the best definition of a variable cost?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...
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![7. Which of the following is the best definition of a variable cost?
A. A variable cost is one which is directly traceable to an activity of the business
for which the cost will be used.
B. A variable cost is one which is associated with goods or services purchased,
or produced, for sale to customers.
C. A variable cost is one which changes with changes in the level of activity, over
a defined period of time.
D. A variable cost is one which is spread over a number of activities of the
business for which costs are to be determined.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70c85d99-c7d9-40d7-a702-9d3a50499e36%2Ffc12a2aa-be3b-4fd1-8b28-352c8cfe2723%2F4ktcowl_processed.png&w=3840&q=75)
Transcribed Image Text:7. Which of the following is the best definition of a variable cost?
A. A variable cost is one which is directly traceable to an activity of the business
for which the cost will be used.
B. A variable cost is one which is associated with goods or services purchased,
or produced, for sale to customers.
C. A variable cost is one which changes with changes in the level of activity, over
a defined period of time.
D. A variable cost is one which is spread over a number of activities of the
business for which costs are to be determined.
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