Variable costs are:
A)costs that don't depend on the quantity of output produced.
B)costs that depend on the quantity of output produced.
C)one-time costs.
D)usually sunk and thus irrelevant.

Question

Quizplus · Accepted Answer

Variable costs are those that vary directly with the level of output. This means that as the quantity of output produced increases, variable costs increase, and as the quantity of output decreases, variable costs decrease.

Variable Costs Are