The Typical Relationship Between Variable Costs and Volume May Be

Multiple Choice

The typical relationship between variable costs and volume may be described best as follows:

A) Costs increase in an erratic, unpredictable fashion with changes in volume.
B) Costs stay fairly constant with changes in volume.
C) Costs increase with changes in volume up to a certain point and then remain constant.
D) Costs increase in direct proportion to increases in volume.