Variable costs are
A) a production expense that does not vary with output.
B) a production expense that changes with the quantity of output produced.
C) equal to total cost divided by the units of output produced.
D) the amount by which a firm's cost changes if the firm produces one more unit of output.

Question

Quizplus · Accepted Answer

Variable costs are production expenses that change with the quantity of output produced. Examples of variable costs include raw materials and labor costs.

Variable Costs Are