Business costs that change with the level of production are called _____ costs.

A) inflexible
B) fixed
C) variable
D) production

Variable Costs

Expenses that vary directly with the level of production or sales volume.

Production

Use of resources, such as people and machinery, to convert materials into finished goods and services.

Inflexible

Lacking the ability to adapt or change according to different situations, conditions, or demands; rigid in approach or structure.