Which of the Following Would Be Considered a Variable Cost

question 6

Multiple Choice

Which of the following would be considered a variable cost in a manufacturing setting?

• A) rent
• B) administrative salaries
• C) insurance
• D) direct labor

Understand the implications and definitions of pay secrecy, pay compression, and pay inversion in wage and salary administration.

Understand the concepts of economies of scale, constant returns to scale, and diseconomies of scale.

Identify how changes in output affect long-run average total cost.

Calculate average fixed, variable, and total costs given specific data.

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Definitions:

Consecutive GICs

A sequence of Guaranteed Investment Certificates held one after another, often to create a ladder strategy for managing interest rate risk.

Interest Rates

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Term Deposit

A bank deposit that has a fixed term or period of time until you can access your money, often with a higher interest rate than savings accounts.

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a specified future date or on demand.