Which of the Following Would Be Classified as a Variable

question 139

Multiple Choice

Which of the following would be classified as a variable cost for the local Texaco station?

• A) Interest payments to a local bank for a 5-year loan.
• B) The total wages paid to the workers who are all paid $16.00 per hour, no matter how many hours they work each week.
• C) The premiums paid for liability insurance, which are constant throughout the life of the contract.
• D) The opportunity cost of money used to finance the installation of some new pumps.

---

Definitions:

Express Condition

A specific and explicitly stated requirement in a contract that must be met for contractual obligations to be fulfilled.

Certificate of Occupancy

An official document issued by a local government agency or building department certifying a building's compliance with applicable building codes and other laws, indicating it is in a condition suitable for occupancy.

Implied-in-Law Condition

A requirement understood within legal agreements or contracts, not explicitly stated but legally binding.

Concurrent Conditions

Circumstances or events that occur at the same time or under the same conditions, often in legal or contract terms.