This is the expense for a good or product that changes in proportion to the activity of the company.

Question

Marely Mack

Business

24 May, 04:49

This is the expense for a good or product that changes in proportion to the activity of the company.

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Nadia Allen · Answer 1

Variable costs

Explanation:

Variable costs are those that vary with the level of activity of the company. For example, raw materials are a variable cost. If you sell 10 units at $1 per unit, the variable cost is $10. If you sell 15 units it's $15. Fixed cost remains the same regardless of the number of units sold.