Which of the following is an example of a variable cost for an amusement park?
A) salary of the park manager
B) food cart supplies
C) liability insurance
D) interest on the property's mortgage
E) property taxes

Question

Quizplus · Accepted Answer

A variable cost is a cost that changes with the level of activity of a business. Food cart supplies is an example of a variable cost for an amusement park since the amount of supplies needed would depend on the level of demand for food and beverages within the park. The other options listed are examples of fixed costs, as they do not change with the level of park attendance or activity.

Which of the Following Is an Example of a Variable