________ differ greatly depending upon the level of production.
A) Fixed costs
B) Adjusted costs
C) Attributed costs
D) Unknown costs
E) Variable costs

Question

Quizplus · Accepted Answer

Variable costs are the costs that vary directly with the level of production. They include expenses such as materials, labor, and utilities, which increase or decrease as production increases or decreases. In contrast, fixed costs remain constant regardless of production levels, and attributed costs are costs that are assigned to a particular product based on a particular criterion, such as activity-based costing. Adjusted costs and unknown costs are not commonly used terms in cost accounting.

________ Differ Greatly Depending Upon the Level of Production