Which of the Following Cost Line Items Would Be a Variable

question 21

Multiple Choice

Which of the following cost line items would be a variable cost?

• A)Office salaries
• B)Rent
• C)Raw Materials
• D)Insurance
• E)None of the above

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Definitions:

In Writing

The term "in writing" refers to the requirement that certain agreements, contracts, or notices be recorded on paper or in a digital format to ensure legality and enforceability.

Guarantee

A formal assurance, typically by one party to another, that certain conditions will be fulfilled, including quality, performance, or durability of a product or service.

Primary Obligation

The fundamental duty or liability that a party is required to fulfill under a contract.

Indemnity

A contractual agreement between parties where one agrees to compensate the other for any loss or damage incurred.