Which of the following is not an example of a variable cost?
A) Straight-line depreciation on a machine that has a five-year service life.
B) Wages of manufacturing workers whose pay is based on hours worked.
C) Tires used in the production of tractors.
D) Aluminum used to make patio furniture.
E) Commissions paid to sales personnel.

Question

Quizplus · Accepted Answer

Straight-line depreciation on a machine is considered a fixed cost, not a variable cost, because it remains constant regardless of the level of production or sales. Variable costs, on the other hand, vary with production volume, such as wages based on hours worked, materials used in production, and sales commissions.

Which of the Following Is Not an Example of a Variable