Costs that fluctuate based on production levels achieved are called _____ costs.
A) breakeven
B) overhead
C) fixed
D) variable

Question

Quizplus · Accepted Answer

Variable costs are costs that vary based on the level of production achieved. As production levels increase, variable costs also increase, and as production levels decrease, variable costs decrease as well. Breakeven costs refer to the minimum level of production needed to cover all costs, while overhead costs and fixed costs remain constant regardless of production levels.

Costs That Fluctuate Based on Production Levels Achieved Are Called