Which of the following is true regarding variable costs during production increases?

Variable costs are directly associated with the level of production in a business. As production increases, the requirement for inputs such as labor, raw materials, and other resources rises correspondingly, leading to an increase in variable costs. This characteristic of variable costs is crucial for understanding how businesses scale their operations. Unlike fixed costs, which remain unchanged regardless of production levels, variable costs fluctuate as the output increases or decreases. Therefore, the correct answer reflects the fundamental principle that higher production levels necessitate greater expenditure on variable inputs.