Final answer:
Variable costs, such as labor and raw materials, vary with production levels and are not present if no units are produced, unlike fixed costs which do continue. Therefore, the statement is false.
Step-by-step explanation:
Variable costs are costs that continue even if no units are produced. They are costs that vary with the level of production or output. Variable costs are indeed expenses that vary with the level of production or service provision. They are not present if no units are produced; therefore, they do not continue in the absence of production. As such, costs like labor and raw materials would not accrue if nothing is being produced. In contrast, fixed costs are those that must be paid regardless of the level of production, such as rent or salaries for permanent staff. Hence, the statement that variable costs continue even if no units are produced is false.