Costs that vary directly with changes in the number of units produced or sold are called
A) changeables.
B) variable costs.
C) direct costs.
D) fixed costs.
E) marginal costs.

Question

Quizplus · Accepted Answer

Costs that vary directly with changes in the number of units produced or sold are called variable costs. This means that as production or sales increase, the variable costs also increase proportionally. Examples of variable costs include direct materials, direct labor, and sales commissions.

Costs That Vary Directly with Changes in the Number of Units