Which of the Following Is an Example of a Variable

question 51

Multiple Choice

Which of the following is an example of a variable cost?

• A)insurance on the production equipment
• B)direct materials
• C)the production supervisor's salary
• D)depreciation of the factory building

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Definitions:

Labor and Material

Refers to the total cost of the work force (labor) and the materials used in the production of goods or the provision of services.

Transportation Costs

Expenses incurred in moving goods or materials from one location to another, including shipping fees, freight, and logistics services.

Sales Tax

A tax imposed by a government on the sale of goods and services, usually calculated as a percentage of the retail price.