What is a cost that changes with the level of output?
A) an elastic cost
B) a fixed cost
C) a liquidity cost
D) a variable cost

Question

Quizplus · Accepted Answer

A variable cost is a cost that changes with the level of output or production. This means that as the level of output increases, the cost also increases, and vice versa. Examples of variable costs include the cost of raw materials, direct labor costs, and sales commissions.

What Is a Cost That Changes with the Level of Output