Which of the following falls outside of the classification of business expenditures that fall into the category of variable costs?
A) costs that increase with the quantity produced
B) costs of research and development
C) costs related to labor expenditures
D) costs related to physical inputs

Question

Quizplus · Accepted Answer

Variable costs are those that vary directly with the level of production, such as costs related to labor and physical inputs. Research and development costs, however, do not typically vary directly with the quantity produced and are therefore not considered variable costs.

Which of the Following Falls Outside of the Classification of Business