Variable costs:
A)change as the quantity of output changes.
B)are zero when production is zero.
C)are exempliﬁed by direct labour and raw materials.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

Variable costs change as the quantity of output changes (A), and are not zero when production is zero (B). Examples of variable costs include direct labor and raw materials (C). Therefore, option D - "All of the above" - is the best choice.

Variable Costs