Which of the following is an example of a cost that varies in total as the number of units produced changes?
A)Electricity per KWH to operate factory equipment
B)Monthly rent on a factory building
C)Straight-line depreciation on factory equipment
D)Salary of a production supervisor

Question

Quizplus · Accepted Answer

Electricity per KWH to operate factory equipment will vary in total as the number of units produced changes, as more production requires more usage of electricity. The other options, monthly rent on a factory building, straight-line depreciation on factory equipment, and salary of a production supervisor, are fixed costs that do not change with the number of units produced.

Which of the Following Is an Example of a Cost