_________ are those cost which changes in same proportion with every change in output
A
Variable cost
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B
Fixed cost
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C
Semi-variable cost
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D
Semi-fixed cost
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Solution
The correct option is A Variable cost Variable costs are directly proportional to the level of production. If zero output is being produced then these costs do not have to be incurred. These costs vary with the level of output produced.Wages paid to the factory labour is an example of the same.