Helen sells hand-crafted jewelry through her website and social media accounts.Helen purchases the materials and assembles the pieces after a customer places an order.For Helen, the materials she purchases for the jewelry are

Question

Quizplus · Accepted Answer

Variable costs are those costs that change when an additional product is sold (or manufactured).In this case, Helen only incurs the materials costs once she has made a sale.Therefore they are called variable costs.

Helen Sells Hand-Crafted Jewelry Through Her Website and Social Media