Variable costs include all of the following EXCEPT
A) property taxes.
B) direct labor.
C) sales commissions.
D) annual rent.

Question

Quizplus · Accepted Answer

Property taxes are a fixed cost as they do not vary with the level of production or sales. Direct labor and sales commissions are variable costs as they vary with the level of activity. Annual rent can be a fixed or variable cost depending on the lease agreement, but it is not always a variable cost.

Variable Costs Include All of the Following EXCEPT