The Costs That Change with the Amount of a Product

question 104

Multiple Choice

The costs that change with the amount of a product produced and sold are

• A)variable costs.
• B)floating costs.
• C)changing costs.
• D)fixed costs.
• E)fluctuating costs.

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Definitions:

Independent Variable

A variable in an experiment or model that is manipulated or changed to observe its effect on a dependent variable, without being affected by other variables.

Machine-Hours

A measure of production time that indicates the total hours machines were operated to complete a task or manufacture goods.

Relevant Range

The span of activity levels within which the assumptions about fixed and variable cost behaviors hold true, crucial for accurate budgeting and planning.

Variable Cost

A cost that varies directly with the level of production or business activity, such as materials and labor directly involved in production.