Variable costs _____________.
A) change as a function of the quantity of output produced.
B) (for a given time period) are constant no matter the quantity of output produced.
C) change as a function of the next unit of output produced.
D) comprise the sum total of all production expenses of the firm for some time period.
E) comprise the sum total of all production expenses of the firm for some time period, expressed relative to the total output produced for that same time period.

Question

Quizplus · Accepted Answer

Variable costs change as a function of the quantity of output produced because they vary with the level of production, such as costs for materials and labor directly involved in production.

Variable Costs _____________