Which one of the following terms refers to the expenses that fluctuate with changes in the number of products produced?
A)variable costs
B)depreciation
C)asset purchase costs
D)costs of mechanism
E)inflationary costs

Question

Quizplus · Accepted Answer

Variable costs change in proportion to the level of production activity. They increase as production increases and decrease as production decreases, unlike fixed costs which remain constant regardless of the level of production. Examples include raw materials and direct labor costs.

Which One of the Following Terms Refers to the Expenses