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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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