Business costs that remain change with the level of production are called ________ costs.
A) inflexible
B) fixed
C) variable
D) production

Question

Quizplus · Accepted Answer

Variable costs are the costs that vary with the level of production, such as labor and raw material costs. Fixed costs, on the other hand, remain the same regardless of the level of production, such as rent and salaries. Inflexible costs are a type of fixed cost that cannot be easily adjusted in the short term, such as long-term leases or loan repayments. Production costs are a general term that can refer to both fixed and variable costs involved in the production process.

Business Costs That Remain Change with the Level of Production