_____________ costs are a function of quantity sold, not time.
A) fixed
B) depreciation
C) operating
D) variable

Question

Quizplus · Accepted Answer

Variable costs are directly proportional to the quantity sold or produced and are not affected by time. These costs include raw materials, direct labor, and direct expenses related to production. Fixed costs, on the other hand, do not vary with the quantity produced or sold and are associated with the basic infrastructure of the business, such as rent or insurance. Depreciation costs are usually fixed over a period of time and are not related to the quantity sold or produced. Operating costs are also not necessarily related to the quantity sold, but encompass all expenses related to the day-to-day operations of the business.

_____________ Costs Are a Function of Quantity Sold, Not Time