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Variable costs: A - OCR - GCSE Business - Question 8 - 2020 - Paper 1
Question 8
Variable costs: A. are not affected by changes in output B. fall as output rises C. increase as output rises D. remain constant over time Your answer __
Worked Solution & Example Answer:Variable costs: A - OCR - GCSE Business - Question 8 - 2020 - Paper 1
Step 1
C. increase as output rises
Answer
Variable costs are expenses that change in proportion to the production output. This means that as the volume of goods or services produced increases, the variable costs also rise. This is due to factors such as the cost of raw materials, labor, and utilities that are directly tied to the production levels. Therefore, the correct answer to the question is:
C. increase as output rises.