The costs that change directly with the units produced are known as _____ costs.

Name: The costs that change directly with the units produced are known as _____ costs.
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Question

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Variable costs are costs that vary directly with the units produced. For instance, all of the materials that go into the production of a widget might cost a total of $10, which means that the firm has to charge at least $10 per widget, to cover at least the variable costs of production.

The Costs That Change Directly with the Units Produced Are