Asked by Ashley Fawcett on Sep 23, 2024
Variable costs are
A) costs that vary with output
B) not important in decision making
C) costs that do not vary with output
D) equal to total costs
Variable Costs
Costs that change in proportion to the level of output or activity.
Total Costs
The sum of all expenses associated with the production of goods or services, including both fixed and variable costs.
Output
The amount of goods or services produced by a person, machine, factory, or country.
- Differentiate between constant and fluctuating expenses.
Learning Objectives
- Differentiate between constant and fluctuating expenses.