Dizzy donates $2 of every entrance fee to a local homeless shelter.This charitable contribution would best be described as a:

A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost

True Variable Cost

Costs that vary directly and proportionally with the level of production or activity within a business.

Fixed Cost

Expenses that do not change in total despite fluctuations in production or sales volume.

Mixed Cost

A cost consisting of both fixed and variable components and which is thus partially affected by changes in the level of activity.