_____ is the changeable cost or expenses that will increase or decrease with the level of sales volume.

Question

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Variable costs are expenses that change with the volume of sales. Examples may include cost of raw materials, production supplies, and labor costs directly related to production. Property tax (B) is a fixed cost that does not vary with sales volume. Inventory (C) can be both a fixed or variable cost depending on the type of inventory, but it is not solely a variable cost. Fixed cost (D) is a cost that remains constant regardless of sales volume.

_____ Is the Changeable Cost or Expenses That Will Increase