Which One of the Following Is Most Likely a Variable

question 67

Multiple Choice

Which one of the following is most likely a variable cost?

• A)Office rent.
• B)Property taxes.
• C)Property insurance.
• D)Direct labour costs.
• E)Management salaries.

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Definitions:

Economic Profits

The disparity between the amount a business earns in total and the sum of its outright and inferred expenses.

Explicit Costs

Direct, out-of-pocket payments for goods and services that are used in the production of other goods and services.

Implicit Costs

The opportunity costs of using resources that a firm already owns, not involving direct monetary payment.

Road Lane

A specific portion of road or street designated for particular types of vehicles, often marked by lines, intended to manage traffic flow and enhance safety.