Costs that depend on the number of units produced are called
A) markup.
B) operational expenses.
C) fixed costs.
D) variable costs.
E) overhead.

Question

Quizplus · Accepted Answer

Variable costs are expenses that fluctuate in direct proportion to the amount of units produced. Examples of variable costs include raw materials, production labor, and shipping expenses. As more units are produced, variable costs will increase accordingly.

Costs That Depend on the Number of Units Produced Are