What are variable costs?

A) costs that can be negotiated in advance

B) costs that remain the same no matter how much is produced

C) costs that change based on production

C) costs that change based on production

Explanation:

Variable costs are business expenses that are directly proportional to the production level. They increase or decrease with changes in the level of production. Variable costs consist mostly of the direct cost of production.

Examples of variable costs are packaging, raw materials and direct labor. Should production increase, variable costs increases. Variable costs contrast fixed costs, which do not change regardless of the level of production. Total variable cost is obtained by multiplying the total output by variable cost per unit.