Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Cost of tires, with respect to number of vehicles produced
A)Variable cost
B)Fixed cost

Question

Quizplus · Accepted Answer

The cost of tires is a variable cost as it varies depending on the number of vehicles produced. Each vehicle produced would require a set number of tires, resulting in a direct relationship between the production level and the tire cost.

Select the Appropriate Classification of Each of the Costs Listed