Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer.
-cost of transporting cars to dealerships
A)variable
B)fixed

Question

Quizplus · Accepted Answer

The cost of transporting cars to dealerships is considered a variable cost because it fluctuates with the number of cars produced and sold. The more cars manufactured and shipped to dealerships, the higher the transportation costs.

Select the Appropriate Cost Behavior for the Following Costs Incurred