ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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costs that vary directly as the level of production goes high or low:
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variable cost
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fixed cost
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total cost
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None of the above
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Explanation:
Detailed explanation-1: -Variable costs are costs that vary as production of a product or service increases or decreases. Unlike direct costs, variable costs depend on the company’s production volume. When a company’s production output level increases, variable costs increase.
Detailed explanation-2: -Variable costs are expenses that vary in proportion to the volume of goods or services that a business produces. In other words, they are costs that vary depending on the volume of activity. The costs increase as the volume of activities increases and decrease as the volume of activities decreases.
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