Which of the following is not an example of a cost that varies in total as the number of units produced changes?
A) electricity per KWH to operate factory equipment
B) direct materials cost
C) straight-line depreciation on factory equipment
D) wages of assembly worker

Question

Quizplus · Accepted Answer

Straight-line depreciation on factory equipment is a fixed cost, meaning it remains constant regardless of the number of units produced. The other options are examples of variable costs, which increase or decrease with the number of units produced.

Which of the Following Is Not an Example of a Cost