Which of the following is the best example of a variable cost in a factory?
A) factory building rent
B) lubricant for machinery
C) product advertising costs
D) factory supervisor's salary

Question

Quizplus · Accepted Answer

Lubricant for machinery is a variable cost because it increases or decreases based on the level of production. As production increases, more lubricant will be needed to maintain the machinery, while if production decreases, less lubricant will be needed. The other options are either fixed costs or semi-variable costs, where the amount spent is not directly tied to the level of production.

Which of the Following Is the Best Example of a Variable