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

Question

Quizplus · Accepted Answer

Direct labour costs are most likely a variable cost as they directly vary with the level of output or production. The more units produced, the more labour is required, leading to an increase in direct labour costs. The other options are more likely to be fixed costs.

Which One of the Following Is Most Likely a Variable