Costs that change as output changes are:
A) variable costs.
B) fixed costs.
C) sunk costs.
D) None of the statements is correct.

Name: Costs that change as output changes are: A) variable costs. B) fixed costs. C) sunk costs. D) None of the statements is correct.
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Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of output. As output increases, variable costs also increase, and vice versa. Examples of variable costs include direct labor and raw materials.

Costs That Change as Output Changes Are