alleryStart learning →Variable costs are defined as costs that vary per unit of:
ARegulation
BProduction
CAdvertising
DFinancing
Answer & Solution
Correct answer: B. Production
1. The other cost class moves with output.
2. Fixed costs do not change within a given range of production.
3. Variable costs are those costs that vary per unit of production.
4. Materials used in each unit are the standard example.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 3 'Cost-Volume-Profit Analysis'_
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