________ are the per-unit costs of production that will fluctuate depending on how many units or individual products a firm produces.

Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of production output. These costs include direct material, direct labor, and variable overhead. For example, if a manufacturing firm produces more units, it will incur more variable costs for raw materials, direct labor, and power usage.

________ Are the Per-Unit Costs of Production That Will Fluctuate