________ costs are costs that a company incurs whether it sells something or not. ________ costs are the costs a company incurs as it generates sales.
A) Preset; Marginal
B) Variable; Fixed
C) Set; Marginal
D) Fixed; Variable
E) Marginal; Set

Question

Quizplus · Accepted Answer

Fixed costs are incurred regardless of sales, whereas variable costs increase or decrease as sales increase or decrease. Marginal costs refer to the cost of producing one additional unit, which would fall under the category of variable costs. The terms preset, set, and marginal do not accurately reflect these concepts.

________ Costs Are Costs That a Company Incurs Whether It