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The Tolia Company has costs that include employee salaries (direct labor) and costs it pays for the products it sells (direct materials costs). These costs that change with the level of output are called _____ costs. a. variable b. independent c. indirect d. fixed

Sagot :

Costs that change with the level of production are called variable costs.

What are variable costs?

These are the costs that vary according to the factors of production, that is, when production increases, costs increase, and when production decreases, costs also decrease.

Therefore, Tolia Company has variable costs those related to direct labor and the costs it pays for products sold.

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