Which of the Following Costs Is a Variable Cost

question 4

Multiple Choice

Which of the following costs is a variable cost?

• A) rental expense for factory building for manufacturer of electronics
• B) lease cost for factory machine for manufacturer of electronics
• C) fuel for airplane for airline
• D) depreciation expense of airplane for airline

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Definitions:

Chi-squared Distribution

A distribution used in statistics to test hypotheses about the frequency distribution of observed data compared to the expected distribution if the null hypothesis is true.

Alternative Hypothesis

A statement that contradicts the null hypothesis and is considered true if the null hypothesis is rejected based on statistical evidence.

Proportions

Fractions or percentages that represent part of a whole or a ratio of one quantity to another.

Proportions

Ratios that compare the part of a whole to the whole itself, often expressed in terms of a fraction or percentage.