Variable Costs Are Costs That Vary on a Per-Unit Basis

question 27

True/False

Variable costs are costs that vary on a per-unit basis with changes in the activity level.

---

Definitions:

Expense Item

An expenditure or cost incurred by a business or individual, which is recorded and tracked for financial accounting purposes.

Introductory Stage

The initial phase in the product life cycle, characterized by product launch, limited distribution, and marketing efforts to build awareness.

Moisturizing Shampoo

A hair care product specifically formulated to add moisture and prevent dryness.

Product Line

A group of related products marketed by a company under a single brand name.