Consider a bakery like Entenmann's: The majority of the ___________ costs are the cost of the ingredients,primarily flour.
A) fixed
B) incidental
C) prestige
D) inelastic
E) variable

Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of production, such as the cost of ingredients for a bakery. The cost of flour is directly tied to the amount of baked goods produced, making it a variable cost. Fixed costs are expenses that do not change with the level of production, such as rent or salaries. Incidental costs are unexpected expenses that may arise but are not an essential part of the production process. Prestige costs are related to the reputation or image of a product, and inelastic costs are expenses that do not change with fluctuations in demand.

Consider a Bakery Like Entenmann's: the Majority of the ___________