Which of the following is the best example of a variable cost for a medical lab?
A) bandages
B) salary of receptionist
C) leasing lab equipment
D) advertising on local radio station

Question

Quizplus · Accepted Answer

Bandages are a consumable material used during medical procedures and their usage can vary depending on the number of patients and procedures performed, making them a variable cost. The other options are fixed costs as they remain constant regardless of the number of patients or procedures performed. The salary of the receptionist is a fixed cost as they are paid a fixed amount regardless of how many patients come in. Leasing lab equipment is also a fixed cost as the lab has to pay the same amount regardless of how much it is used. Advertising on a local radio station is a discretionary cost and may be considered a fixed cost if it is a regular expense. However, if the lab decides to advertise more during a certain period or for a certain campaign, it would become a variable cost.

Which of the Following Is the Best Example of a Variable