Which of the following is the best example of a variable cost?
A)property taxes
B)lease payments for equipment rental
C)rent on office space
D)wages for hourly workers
E)interest on outstanding loans

Question

Quizplus · Accepted Answer

Wages for hourly workers are a variable cost because they change depending on the amount of labor needed for production or service work. As demand fluctuates, the cost of wages fluctuates as well. The other options, such as property taxes, lease payments, rent, and interest payments, are typically fixed costs that do not change with production levels.

Which of the Following Is the Best Example of a Variable