Variable Costs
Variable Costs are expenses that change in proportion to the activity or volume of a business.
Benefits
Variable costs change with business activity levels, affecting budgeting and pricing strategies.
Frequently Asked Questions
Do variable costs per unit change in proportion to changes in volume of activity?
Yes, variable costs per unit change directly with the level of activity or production volume.
What are expenses that change in proportion to the activity of a business?
Expenses that change in proportion to the activity of a business are called variable costs.
Do variable costs change with volume?
Yes, variable costs change directly with the level of activity or production.
Key Takeaway
Variable costs change with business activity levels, affecting budgeting and pricing decisions.