Which of the following is NOT 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) Direct materials cost
C) Straight-line depreciation on factory equipment
D) Wages of assembly worker

Question

Quizplus · Accepted Answer

Straight-line depreciation is a fixed cost that does not vary with production levels. The other options are variable costs that increase or decrease with the number of units produced.

Which of the Following Is NOT an Example of a Cost