Which term refers to expenses that change depending on other factors?
A. Variable expenses
B. Relative expenses
C. Total expenses
D. Fixed expenses
Answer (2)
Variable expenses are costs that change depending on production or sales levels, such as ingredients in a bakery. They contrast with fixed expenses, which remain constant regardless of activity level. Therefore, the answer is A. Variable expenses. ;
Variable expenses are costs that fluctuate based on activity or production levels, such as materials used in manufacturing. They are different from fixed expenses, which stay the same regardless of the level of production. Therefore, the correct answer is A. Variable expenses.
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