Question

Variable costs are Group of answer choices
A) costs that change every day or every month.
B) costs that change with the level of production.
C) changes in total cost due to the production of an additional unit of output.
D) costs that remain to be paid even if the firm shuts down temporarily.

Answer 1

Answer:

B) costs that change with the level of production.

Explanation:

Variable costs are costs that change according to the total production output.

The two main cost components in the production process are fixed costs, which remain to be paid even if the firm shuts down temporarily, and variable costs, which are subject to change according to the level of production.

Therefore, the answer is alternative B)