Chen uses part-time employees whose hours increase when she gets a big order and decrease during slow times. The hours her employees work are an example of a(n) ________ cost.
A) fixed
B) flexible
C) adjustable
D) variable
E) movable

Question

Quizplus · Accepted Answer

Variable costs change with the level of output, which is why the hours Chen's employees work (and thus their wages) vary depending on the size of the orders she receives.

Chen Uses Part-Time Employees Whose Hours Increase When She Gets