Examples of variable costs include all of the following except
A)raw materials costs.
B)the plant manager's salary.
C)direct labor costs.
D)electricity used in running production machinery.

Question

Quizplus · Accepted Answer

The plant manager's salary is an example of a fixed cost because it does not vary with changes in production levels, whereas raw materials costs, direct labor costs, and electricity used in running production machinery are all examples of variable costs because they will increase or decrease with changes in production levels.

Examples of Variable Costs Include All of the Following Except