BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company’s production or sales volume-they rise as production increases and fall as production decreases.

Detailed explanation-2: -Variable costs are any expenses that change based on how much a company produces and sells. This means that variable costs increase as production rises and decrease as production falls. Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials.

Detailed explanation-3: -Variable costs change in proportion to the quantity of output. As production quantity increases, the cost increases; as production quantity decreases, so do the costs. Most accounting textbooks depict variable costs as varying directly with volume.

Detailed explanation-4: -Answer and Explanation: It is true that total variable costs change in proportion to changes in the volume of activity. Variable costs include components or direct labor that are applied to making a product and can change depending on how busy the company is.

Detailed explanation-5: -Variable cost is a production expense that increases or decreases depending on changes in a company’s manufacturing activity. For example, the raw materials used as components of a product are variable costs because this type of expense typically fluctuates based on the number of units produced.