Which of the Following Is Not a Variable Cost

question 3

Multiple Choice

Which of the following is not a variable cost?

• A)direct materials
• B)direct labor
• C)delivery costs
• D)rent
• E)all of the above are variable costs

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Definitions:

Prior Process Costs

Expenses that have been incurred in earlier stages of production or processing, which are carried forward into the cost of subsequent production processes.

Transferred In Costs

Costs associated with items that are partially produced in one department of a company and then moved to another department for further processing or completion.

Process

A series of actions or steps taken in order to achieve a particular end.

Homogeneous Products

Goods that are essentially identical in quality and function, making them indistinguishable from one another to consumers.