When cost relationships are linear, total variable prime costs will vary in proportion to changes in A. direct labor hours. B. total material cost. C. total overhead cost. D. production volume.

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When cost relationships are linear, total variable prime costs will vary in proportion to changes in A

Finance Mar 15, 2021

When cost relationships are linear, total variable prime costs will vary in proportion to changes in

A. direct labor hours.
B. total material cost.
C. total overhead cost.
D. production volume.

Expert Solution

Answer: d . production volume .

If the cost relationship is linear, the total variable prime cost will change at a constant rate with the change in the production volume.

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