Variable cost refers to
A) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
B) the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.
C) the total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and marginal cost.
D) the average amount of money received for selling one unit of a product or simply the price of that unit.
E) the change in total cost that results from producing and marketing one additional unit of a product.

Question

Quizplus · Accepted Answer

Variable cost refers to the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. This means that as the quantity of production increases or decreases, the variable cost will also increase or decrease, respectively. Examples of variable costs include raw materials, direct labor, and production supplies.

Variable Cost Refers to