Which of the following best describe the term variable costs.
A) The sales level that results in zero project net income.
B) The sales level where operating cash flow is equal to zero.
C) Costs that change when the quantity of output changes.
D) Options for future, related business products or strategies.
E) A combination of scenario and sensitivity analyses.

Question

Quizplus · Accepted Answer

Variable costs are those costs that vary directly with the level of output. This means that as the quantity of output changes, the total variable costs change in proportion. Examples include raw materials, direct labor, and some utilities costs.

Which of the Following Best Describe the Term Variable Costs