Which One of the Following Is Most Likely a Variable

question 417

Multiple Choice

Which one of the following is most likely a variable cost?

• A) Office rent.
• B) Property taxes.
• C) Property insurance.
• D) Direct labor costs.
• E) Management salaries.

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, typically from profits earned.

Revenues

The total amount of money received by the company for goods sold or services provided during a certain period.

Total Assets

The sum of all assets owned by a company, as reported on the balance sheet, representing the resources controlled by the company.

Liabilities

Financial obligations or debts that a company owes to others, due to past transactions or events.