Select the description from the list provided that best matches the following term.

Variable cost

Multiple Choice

The way a cost changes relative to change in a measure of activity

A factor that causes $($or drives$)$ changes in costs

A cost that remains constant in total when volume changes

A cost that changes in total in direct proportion to changes in volume

A company's cost mix or relative proportion of variable and fixed costs to total costs

The difference between a company's sales revenue and its variable costs

Costs composed of both fixed and variable components

A condition in which a percentage change in revenue will produce a proportionately larger percentage change in net income

P

Multiple Choice

$4,200$

$2,188$

$1,600$

$1,439$

Multiple Choice

Company A$\text{'}$s cost structure has higher fixed costs than B$\text{'}$s$.$

Company B$\text{'}$s cost structure has higher fixed costs than A$\text{'}$s$.$

Company A$\text{'}$s cost structure has more variable costs than B$\text{'}$s$.$

At a volume of $50,000$ units, Company A$\text{'}$s magnitude of operating leverage was lower than B$\text{'}$s$.$