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mamaluj [8]
3 years ago
13

Total variable costs A. always increase with output. B. initially decrease and then increase with output. C. initially increase

as output increases and then decrease. D. always decrease with output.
Business
1 answer:
galina1969 [7]3 years ago
6 0

Answer:

A. always increase with output.

Explanation:

There are basically 2 groups of cost namely; Fixed and variable cost.

The fixed cost are usually like sunk cost that will be incurred irrespective of how many units are produced.

Total variable costs refers to all elements of cost that vary proportionately with the level of activities or output. A good example is the direct material cost.

It is the total of the marginal cost over the units produced. The right answer is A. always increase with output.

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Explanation:

We have detailed calculations shown as below:

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So, for BMW recent year, we have:

+ Sales price variance: $65,113,200;

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