Variable Inputs Are Those Whose

question 121

Multiple Choice

Variable inputs are those whose

• A)quantity changes as the level of output changes
• B)costs are irreversible
• C)quantity remains constant regardless of the level of output
• D)costs are considered sunk costs
• E)price is continuously changing

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Definitions:

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

Additional Parts

Components or pieces beyond the basic requirements that are included in the manufacturing or assembly of a product.

Idle Capacity

Unused or underused production capability within a manufacturing facility, often resulting in inefficiency and lost potential revenue.

Full (Absorption) Cost

The total cost of a product that includes all direct and indirect costs, such as raw materials, labor, and overhead, required for its production.