Which of the following is an example of a variable cost?
A)insurance on the production equipment
B)direct materials
C)the production supervisor's salary
D)depreciation of the factory building

Question

Quizplus · Accepted Answer

Direct materials are considered variable costs because they vary with the level of production. The more units produced, the more materials needed. The other options, such as insurance, salary, and depreciation, are typically considered fixed costs because they do not vary directly with production levels.

Which of the Following Is an Example of a Variable