Which of the Following Is Not a Variable Cost

question 3

Multiple Choice

Which of the following is not a variable cost?

• A)direct materials
• B)direct labor
• C)delivery costs
• D)rent
• E)all of the above are variable costs

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Definitions:

Loss

Refers to when a company's expenditures exceed its revenues during a specific period of time, resulting in a negative profit.

Revenue Expenditures

Operating expenses that are fully expensed in the accounting period when incurred and primarily related to the maintenance and repair of assets.

Balance Sheet Expenditures

Expenses that are reflected in the balance sheet, usually through an adjustment of assets or liabilities.

Commercial Substance

A concept that an economic transaction has a significant impact on the future cash flows of a company, justifying its recognition.