Which of the following statements is true about variable costs?

Question

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Variable costs are those that change in proportion to the level of production or sales volume. They must be covered by the price of the goods or services sold to ensure the business remains profitable. Examples of variable costs include raw materials and direct labor. Fixed costs, such as the marketing manager's salary and corporate jet expenditure, do not vary with production volume and are therefore not considered variable costs.

Which of the Following Statements Is True About Variable Costs