Variable costs

Question

Variable costs

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of output or production. As production increases or decreases, variable costs will also increase or decrease. Therefore, the correct choice is D, which states that variable costs vary with output. Choices A and C are incorrect because they suggest that variable costs do not vary with output or price, respectively. Choice B is also incorrect because it implies that variable costs remain constant regardless of changes in output, which is not true.

Variable Costs