Which of the following costs refers specifically to those that change with the quantity of a product sold or produced?
A) Annual costs
B) Variable costs
C) Fixed costs
D) Marginal costs
E) Market-adjusted costs

Question

Quizplus · Accepted Answer

Variable costs are costs that vary directly with the quantity of a product produced or sold. These costs include direct materials and labor costs, as well as any other costs that may vary with production levels, such as packaging materials or shipping costs. Annual costs are simply the total costs incurred in a year, regardless of production levels, while fixed costs are costs that do not vary with the quantity produced or sold. Marginal costs refer specifically to the additional cost of producing or selling one more unit of a product, and market-adjusted costs are costs that are adjusted to reflect changes in market conditions, such as changes in demand or pricing.

Which of the Following Costs Refers Specifically to Those That