In product-mix decisions,as short-run changes in product mix occur,the costs that change:
A)are fixed with the number of units produced or sold.
B)are mixed with the number of units produced or sold.
C)vary with the number of units produced or sold.
D)are idle and they never change with the number of units produced and sold.
E)are not relevant because they are only short-run costs.

Question

Quizplus · Accepted Answer

In product-mix decisions, the costs that change as short-run changes occur in product mix are referred to as variable costs. These costs vary with the number of units produced or sold. Fixed costs, on the other hand, are not affected by changes in product mix in the short run. Therefore, option C is the correct answer.

In Product-Mix Decisions,as Short-Run Changes in Product Mix Occur,the Costs