Final answer:
Batch-level costs vary with the number of goods produced and are closest to variable costs, as they fluctuate with production levels. Fixed costs, on the other hand, remain constant regardless of output.
Step-by-step explanation:
The costs incurred each time a company generates a set quantity of goods produced at one time are called batch-level costs. These are not among the provided options, which are: 1) Fixed 2) Variable 3) Direct 4) Indirect. However, to address the closest possible answer among the given choices, the costs that vary with production in the short-run perspective would be variable costs.
Fixed costs are costs incurred before production and do not change regardless of the output level. Since batch-level costs change with the number of batches produced, they are more akin to variable costs because they will fluctuate depending on the level of production. Variable costs include expenses such as labor and raw materials, which can increase or decrease in direct proportion to production output.