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Standard XII
Accountancy
Comparative Statement of Profit and Loss
Variable cost...
Question
Variable costs change _______ with change in output.
A
Proportionately
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B
Inversely
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C
Disproportionately
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D
Sometimes
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Solution
The correct option is
A
Proportionately
A
variable cost
is a corporate
expense
that
changes in
proportion
to production output.
Variable costs
increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases.
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