Which of the Following Is an Example of a Variable

question 72

Multiple Choice

Which of the following is an example of a variable cost for a bicycle manufacturer?

• A)Rent
• B)Insurance
• C)Tires
• D)Depreciation

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Definitions:

Traditional Income Statement

A traditional income statement is a financial document that reports a company's financial performance over a specific period, showing revenues minus expenses to reveal net income or net loss.

Contribution Margin Format

A format of income statement that separates variable costs from fixed costs to calculate contribution margin, which helps in analyzing profitability.

Absorption Costing

A financial accounting approach that encompasses all expenses of manufacturing, like direct materials, direct labor, along with variable and fixed overhead costs, into the pricing of a product.

Product Cost

The total expense incurred to produce a product, including direct materials, direct labor, and overhead costs.