sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold is referred to as
A) fixed cost.
B) total cost.
C) marginal cost.
D) unit cost.
E) variable cost.

Question

Quizplus · Accepted Answer

Expenses that vary directly with the quantity of the product produced or sold are known as variable costs, which can include expenses such as raw materials, production labor, and shipping costs. Fixed costs are expenses that do not vary with the quantity of products produced or sold, while total cost is the sum of both fixed and variable costs. Marginal cost refers to the additional cost incurred for producing one more unit of product, while unit cost is the average cost per unit of output.

Sum of the Expenses of the Firm That Vary Directly