Variable costs are costs that changes as the units of goods or services that a business produces changes. Variable costs are a central part in determining a product’s contribution margin. The variable cost is an expense that changes in proportion to production output or sales. That is when production or sales increases variable cost increases and vice versa. Based on the next month, determine whether the following statements are true or false.

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Chapter 1, Problem 13E

To determine

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Variable costs are costs that changes as the units of goods or services that a business produces changes. Variable costs are a central part in determining a product’s contribution margin. The variable cost is an expense that changes in proportion to production output or sales. That is when production or sales increases variable cost increases and vice versa.

Based on the next month, determine whether the following statements are true or false.

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