Which of the Following Is Not an Example of a Cost

question 128

Multiple Choice

Which of the following is not an example of a cost that varies in total as the number of units produced changes?

• A) electricity per KWH to operate factory equipment
• B) direct materials cost
• C) straight-line depreciation on factory equipment
• D) wages of assembly worker

---

Definitions:

Lucrative Investment

Describes an investment opportunity that is expected to generate a significant return or profit.

Algonquians

Native American peoples originally living in North America's northern and eastern regions, sharing related languages and cultures.

Tobacco Industry

The sector of the economy engaged in the production, marketing, and sale of tobacco and tobacco products, historically associated with significant health controversies and lawsuits.

Labor System

An organized framework defining the manner in which labor is structured and utilized in an economy or society, including systems like slavery, serfdom, and wage labor.