Business Costs That Change with the Level of Production Are

question 84

Multiple Choice

Business costs that change with the level of production are called _____ costs.

• A)inflexible
• B)fixed
• C)variable
• D)production

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Definitions:

Variable Selling

Costs related to selling activities that vary with sales volume, distinct from fixed sales costs.

Fixed Manufacturing Overhead

Regular, unchanging costs associated with operating a manufacturing facility, excluding variable costs, such as rent, utilities, and salaries for management.

Margin of Safety

The difference between actual or expected sales and the break-even point, representing the cushion against potential losses.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.