The Palasi Candy Company is a small business located in the United States. The owner of Palasi Candy is calculating the projected costs for the coming year. There is rent for the building, salaries for the retail employees, raw materials of sugar, chocolate, and other ingredients, wrappers for packaging of individual pieces of candy, boxes, and radio advertising. Palasi's are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers.
A) sunk costs.
B) variable costs.
C) direct costs.
D) fixed costs.
E) marginal costs.

Question

Quizplus · Accepted Answer

Variable costs change with the level of production, such as raw materials and packaging, which vary depending on the quantity of candy produced.

The Palasi Candy Company Is a Small Business Located in the United