Question

Virtually every business has variable expenses, which move up and down in tight proportion with changes in sales volume or sales revenue

Answer 1

Answer and Explanation:

Dynamic expenses are pointed to as operating expenses that are the production cost and important to run a business.

common example of the variable cost that depends on sales volume.

• The cost of goods sold, that is the equivalent of goods sold to consumers.

• Commissions charged from their selling to salespersons.

• Fees charged by a company when a customer requires a credit or debit card.

so, we say that when a business increase or decrease their sale volume, their variable cost also gets affected.