Question

A variable that likely is incorporated in the error term is: A. The fixed cost of production B. the variable cost of production C. Profit from popsicle sales

Answer 1

Answer: Variable cost of production

Explanation:

Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases. Examples of variable costs include the costs of raw materials and packaging.

Variable cost is the cost that covers through the production phase and changes as production is being finalized. This cost changes price variables depending on how much the company produces. The rise and fall of production determines their final position in pricing. Packaging and the various material cost are examples of variable cost.