Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called costs because the total
Changes based on the number of units produced.
A) variable
B) capital
C) payroll
D) fixed
E) target

Question

Quizplus · Accepted Answer

Variable costs change with the level of output, meaning they increase as more units are produced and decrease as fewer units are produced.

Each PC Produced by HP Involves a Cost of Computer