Consider a bakery in your community. Ingredients such as sugar and butter would be examples of _____ costs.
A)fixed
B)incidental
C)prestige
D)inelastic
E)variable

Question

Quizplus · Accepted Answer

Variable costs are costs that vary based on the level of production or sales. In a bakery, the cost of ingredients such as sugar and butter will vary depending on how many cakes, cookies, and other baked goods they make. Therefore, it is a variable cost.

Consider a Bakery in Your Community