Which of These Costs Is a Variable Manufacturing Cost

question 23

Multiple Choice

Which of these costs is a variable manufacturing cost?

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

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Definitions:

Operating Efficiency

A measure of how well a company utilizes its resources to generate profit without unnecessary waste.

Financial Ratios

Quantitative measures derived from a company's financial statements, used to evaluate its financial health, performance, and viability.

Financial Statements

Reports that summarize the financial performance and condition of a business, including the income statement, balance sheet, and cash flow statement.

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity available to run its operations.