Which of the following is a method for a business to reduce variable costs?

Increasing output with the same amount of material without affecting quality is a method for a business to reduce variable costs because it directly enhances the efficiency of production. Variable costs are expenses that change in direct proportion to the volume of production, such as materials and labor. By maximizing output with the same input, the business can spread its variable costs over a larger number of units, effectively lowering the variable cost per unit. This means that for each unit sold, the company incurs less cost, leading to improved profitability.

This strategy emphasizes operational efficiency and resource optimization, allowing a business to leverage its existing resources more effectively. It can also help in scaling production without a corresponding increase in costs, thus enabling increased competitiveness in the market.

In contrast, reducing the number of employees does not necessarily correlate with variable cost reduction, as employee costs can be fixed or variable depending on the arrangement. Eliminating fixed costs would not impact variable costs directly, as fixed costs are independent of production levels. Finally, investing in new technology that raises costs would not lead to a reduction in variable costs; instead, it could increase overall expenses, impacting profitability negatively in the short term.