An example of a variable cost for a cell phone manufacturer is
A)units sold.
B)the total costs of all cell phone produced.
C)minutes talked.
D)touch screens used in production.

Question

Quizplus · Accepted Answer

The cost of touch screens is a variable cost because it depends on how many cell phones are produced. The cost will increase if more cell phones are produced and decrease if less cell phones are produced. Choices A, B, and C are not variable costs because they do not vary with the production level of the cell phones. Units sold, total cost, and minutes talked are all dependent on factors outside of production.

An Example of a Variable Cost for a Cell Phone