Which term refers to expenses that change depending on other factors?
A.
Relative expenses
B.
Fixed expenses
C.
Variable expenses
D.
Total expenses
C. Variable expenses
The term that refers to expenses that change depending on other factors is C. Variable expenses.
The term that refers to expenses that change depending on other factors is C. Variable expenses.
To answer this type of question, it's important to understand the definitions of the terms given as options.
A. Relative expenses: This term is not commonly used in finance or accounting to refer to expenses. It does not relate specifically to expenses that change depending on other factors.
B. Fixed expenses: Fixed expenses are costs that stay the same regardless of changes in other factors. Examples of fixed expenses include rent, insurance premiums, and loan payments. These expenses do not vary or change based on external factors.
C. Variable expenses: Variable expenses, on the other hand, are costs that change based on various factors such as sales volume, production levels, or time. Examples of variable expenses include raw materials, electricity bills, and shipping costs. These expenses fluctuate depending on changes in the factors that influence them.
D. Total expenses: Total expenses refer to the overall sum of all expenses, whether they are fixed or variable. It doesn't specifically indicate expenses that change depending on other factors.
Therefore, the correct answer is C. Variable expenses.