Question

Costs that increase as production increases and decrease as production decreases are:____.

Answer 1

Costs that increase as production increases and decrease as production decreases are Variable costs .

A Variable cost is a corporate cost that adjusts in percentage to how plenty a business enterprise produces or sells. Variable charges grow or lower depending on a corporation's production or income quantity—they rise as production will increase and fall as manufacturing decreases.

Variable costs are fees that change as the quantity adjustments. Examples of variable fees are raw materials, piece-price hard work, manufacturing components, commissions, delivery fees, packaging substances, and credit score card expenses. In a few accounting statements, the Variable prices of manufacturing are called the “price of products bought.”

Variable fees are fees that alternate as the amount of the coolest or carrier that a business produces modifications. Variable prices are the sum of marginal charges over all units produced. They also can be taken into consideration normal charges. Constant charges and variable fees make up the 2 components of the overall price.

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