ENTREPRENEURSHIP

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: -Answer and Explanation: a) Raw materials is a variable cost. A variable cost is a cost that increases or decreases in total with the volume of production.

Detailed explanation-3: -Answer: d) Wages. Wages are variable costs in a firm, as the number of employees required will vary based on the demand for production, therefore the wages paid to the total number of employees will vary with the number of employees.

Detailed explanation-4: -The correct answer is the marginal cost (A). Marginal cost is the variation in cost that occurs in the total cost when an extra unit is added to the quantity produced. It is, therefore, the cost that is incurred when an extra unit is produced. Marginal cost is made up of all varying costs in the production levels.