An Example of a Variable Cost Is

question 23

Multiple Choice

An example of a variable cost is:

• A)a payment to your raw materials supplier.
• B)a lease payment on a piece of equipment.
• C)a mortgage payment on buildings.
• D)a monthly licensing fee for a software package.

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Definitions:

Specified Threshold

A predetermined level or point at which an action is triggered or a condition changes, often used in decision-making processes.

Supply Chain Manager

A professional responsible for overseeing and managing a company's supply chain and logistics strategy and operations.

Safety Inventory

Extra inventory held by a company to prevent stockouts caused by uncertainties in demand or supply, ensuring product availability.

Product Availability

The extent to which a product can be purchased or obtained when desired by a customer.