Question

The cost which varies in direct proportion to the sales revenue is termed as

Answer 1

Variable cost is the answer.

Answer 2

Answer:

Variable cost

• Explanation:
  

• Variable cost is involved in production.
  

• Variable cost depends upon the company's production volume. That means if the company production output level increases , the variable cost increase where as when the company production falls the production decreases.
  
  Variable cost is the cooperate expenses that changes in proportion that to how much the company produces or sells.
  
  If we plot a graph between volume produced and total variable costs , it would show u a linear relationship.
  
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