During sporting events at the local high school,Ashanti runs a concession stand.The costs associated with the purchase of hot dogs,mustard,relish,ketchup,chips,sodas,paper napkins,and cups are all examples of _____ costs.
A) marginal
B) variable
C) fixed
D) promotional
E) liquidity

Question

Quizplus · Accepted Answer

Variable costs are costs that change with the level of production or sales. In this case, the costs for hot dogs, mustard, relish, ketchup, chips, sodas, paper napkins, and cups will vary depending on how many customers Ashanti serves during each sporting event. Therefore, these costs are variable.

During Sporting Events at the Local High School,Ashanti Runs a Concession