Costs That Rise and Fall Proportionately with the Volume of Output

question 11

Multiple Choice

Costs that rise and fall proportionately with the volume of output are often referred to as:

• A)Variable costs.
• B)Flexible costs.
• C)Idle capacity costs.
• D)Uncontrollable costs.

---

Definitions:

Cost-leadership

A strategic approach by a company to become the lowest-cost producer in its industry for certain products or services, aiming to gain a competitive advantage.

Low Income

Describes a level of earnings that is below the average or median, often associated with economic challenges and limitations in access to resources.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Threats

Potential dangers or harm that can negatively impact individuals, organizations, or systems.