Variable costs include:
A) the cost of raw materials.
B) the salaries of top management.
C) rent on leased buildings.
D) all of the above.

Question

Quizplus · Accepted Answer

Variable costs vary with the production level and include costs such as raw materials, direct labor, and production supplies. Salaries of top management and rent on leased buildings are typically fixed costs. Therefore, only option A, the cost of raw materials, is a variable cost.

Variable Costs Include