Which of the Following Costs Is a Variable Manufacturing Cost

question 54

Multiple Choice

Which of the following costs is a variable manufacturing cost?

• A) Depreciation costs computed using the straight-line method
• B) General Manager's salary
• C) Factory rent
• D) Direct labour costs

---

Definitions:

Constraint

A limitation or restriction in a process, system, or activity that affects its performance or capacity.

Objective Function

A mathematical function used in optimization to define the goal of the operation, such as maximizing profit or minimizing cost.

Maximize Contribution

An objective often pursued in business to enhance the difference between total revenues and total costs, thereby increasing profitability.

Shadow Price

An estimated price for a good or service not determined by market forces, used in economic or financial analysis to value non-market or constrained resources.