Which of the Following Would Be Classified as a Variable

question 462

Multiple Choice

Which of the following would be classified as a variable cost for the local Texaco station?

• A) interest payments to a local bank for a 5-year loan
• B) the total wages paid to the workers who are all paid $16.00 per hour, no matter how many hours they work each week
• C) the premiums paid for liability insurance, which are constant throughout the life of the contract
• D) the opportunity cost of money used to finance the installation of some new pumps

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Definitions:

U.S. Farm Products

Goods produced by the agriculture sector in the United States, including crops, livestock, and their derivatives.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price in a specified period.

Addicted

A condition characterized by compulsive engagement in rewarding stimuli, despite adverse consequences.

Cigarette Smoking

The act of inhaling and exhaling the smoke produced by burning tobacco in cigarettes, which is harmful to health.