An example of a cost that is variable with respect to the number of units produced is:
A)depreciation of factory facilities.
B)power to run production equipment.
C)supervisory salaries.
D)insurance on the headquarters building.

Question

Quizplus · Accepted Answer

Power to run production equipment is a cost that varies with the number of units produced. As more units are produced, more power will be required to produce them, which will result in higher costs. Depreciation of factory facilities, supervisory salaries, and insurance on the headquarters building are fixed costs that do not vary with the number of units produced.

An Example of a Cost That Is Variable with Respect