Which one of the following is most likely a variable cost?
A) Office rent
B) Property taxes
C) Property insurance
D) Direct labor costs
E) Management salaries

Question

Quizplus · Accepted Answer

Direct labor costs are typically considered variable costs because they vary with changes in production levels. The other options are all fixed costs, as they generally do not fluctuate with changes in production.

Which One of the Following Is Most Likely a Variable