Which of the following best describes variable costs in the context of a firm's cost minimization strategy?

Variable costs are expenses that change depending on the level of production a firm undertakes. For example, if a bakery makes more cakes, it needs to buy more flour and sugar, which are variable costs. In a cost minimization strategy, a firm aims to reduce these costs while still meeting production goals. By analyzing and managing variable costs, a firm can find the most efficient way to produce its goods without overspending. This helps the business stay competitive and maximize profits.