Which of the following is an example of a cost that is variable with respect to the number of units produced and sold?
A) Insurance on the headquarters building.
B) Power to run production equipment.
C) Supervisory salaries.
D) Amortization of factory facilities.

Question

Quizplus · Accepted Answer

Power to run production equipment is an example of a variable cost as it varies with the number of units produced and sold. The more units that are produced and sold, the more power will be required to run the equipment. The other options given are examples of fixed costs, which do not change with the number of units produced and sold.

Which of the Following Is an Example of a Cost