Which of the following is an example of a cost that varies in total as the number of units produced changes?
A) Salary of a production supervisor
B) Direct materials cost
C) Property taxes on factory buildings
D) Straight-line depreciation on factory equipment

Question

Quizplus · Accepted Answer

Direct materials cost is an example of a variable cost, which means that it changes in total as the number of units produced changes. The other options, such as salary of a production supervisor, property taxes on factory buildings, and straight-line depreciation on factory equipment, are examples of fixed costs, which do not change in total as the number of units produced changes.

Which of the Following Is an Example of a Cost