Which of the Following Is Most Likely to Be a Variable

question 16

Multiple Choice

Which of the following is most likely to be a variable cost?

• A) Raw materials
• B) Insurance
• C) Supervisor's salary
• D) New computing technology

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Definitions:

Raw Materials

Basic materials that are used in the production process of manufacturing goods, including metals, oil, grains, and other commodities.

Cash Discounts

Incentives offered by sellers to buyers for paying their invoices early, typically a percentage reduction in the invoice amount.

Cash Budget

A forecast of cash receipts and disbursements for the next planning period.

Pro Forma Statement

A financial statement based on hypothetical scenarios or assumptions, used for planning and decision-making purposes.