Which of the Following Is Most Likely to Be a Variable

question 84

Multiple Choice

Which of the following is most likely to be a variable cost for an Internet retailer that sells spices,herbs,and seasonings to consumers?

• A) Annual lease on mixer used to blend seasonings
• B) Executive salaries
• C) Rent for building where spices and herbs are repackaged for consumers
• D) Workers' insurance
• E) Postage for shipping spices and herbs

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Definitions:

Revenue

Income generated from normal business operations, often from the sale of goods and services to customers.

Credit Customer

A customer who purchases goods or services on credit, agreeing to pay at a later specified date.

Expense

Money spent or cost incurred in an entity's efforts to generate revenue.

Asset

Resources owned by a business or individual that have economic value or future benefit.