A printing and duplicating company owns ten photocopying machines. Which of the following associated expenses is a variable cost?
A)the rental of the office space where the photocopiers are kept
B)supplies of paper and toner
C)the salary of the operator who runs and maintains the machines
D)the interest on the loan the company took out to buy the copiers
E)the lighting and heating of the office in which the photocopiers are kept

Question

Quizplus · Accepted Answer

Supplies of paper and toner are considered variable costs because their usage and therefore their costs vary directly with the volume of photocopying done. The more photocopying that is done, the more paper and toner are consumed, leading to higher costs.

A Printing and Duplicating Company Owns Ten Photocopying Machines