Which of the following is a variable cost?
A) Interest payments
B) Raw materials costs
C) Property taxes
D) All of the above are variable costs.

Question

Quizplus · Accepted Answer

Raw materials costs are considered variable costs because they directly vary with the level of production. The more products a company makes, the more raw materials it needs, hence the cost changes with production volume. Interest payments and property taxes are typically fixed costs, not varying directly with the level of production.

Which of the Following Is a Variable Cost