COST ACCOUNTING
VARIABLE COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Costs that change as the quantity of outputs changes.
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Fixed Costs
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Variable Costs
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Explanation:
Detailed explanation-1: -A variable cost is an expense that changes in proportion to production output or sales. When production or sales increase, variable costs increase; when production or sales decrease, variable costs decrease.
Detailed explanation-2: -Variable costs, also called direct costs, depend on output. A change in output causes a change in variable costs.
Detailed explanation-3: -Variable costs are costs that do change when the firm alters the quantity of output produced.
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