Which of the following defines variable costs?

Variable costs are defined as costs that depend on the quantity produced. This means that as production increases or decreases, the total variable costs will change accordingly. For instance, costs of raw materials, labor directly involved in production, and utilities that vary with production levels are all examples of variable costs.

In contrast, fixed costs remain constant regardless of production levels; they do not fluctuate based on how much is being produced. Additionally, the costs associated with fixed resources pertain specifically to fixed costs, not variable ones, which solidifies the definition of variable costs as being directly tied to output levels rather than being static. The total cost structure also comprises both fixed costs and variable costs, but variable costs specifically highlight that portion of total costs which alters with production quantities. Thus, the choice that defines variable costs accurately emphasizes their dependence on production levels.