Which of the following would NOT be included in a firm's total variable cost?
A) Outgoing freight
B) Packaging materials
C) Depreciation on buildings
D) Expenses for parts
E) Sales commissions

Question

Quizplus · Accepted Answer

Depreciation on buildings is a fixed cost as it is not affected by changes in production levels. The other costs listed (outgoing freight, packaging materials, expenses for parts, and sales commissions) are variable costs as they vary depending on the level of production.

Which of the Following Would NOT Be Included in a Firm's