Which of the following is most likely to be a variable cost for a firm?
A) the interest payments made on loans
B) the franchiser's fee that a restaurant must pay to the national restaurant chain
C) the monthly rent on office space that it leased for a year
D) the payroll taxes that are paid on employee wages

Question

Quizplus · Accepted Answer

Variable costs change with the level of production or service delivery. Payroll taxes on employee wages are a variable cost because they increase as the number of employees or their wages increase, which is typically associated with higher levels of production or service.

Which of the Following Is Most Likely to Be a Variable