Which of the following is most likely to be a variable cost for a manufacturer of amusement park rides?
A) annual lease of a tractor-trailer used to deliver rides to buyers
B) warehouse rent to store semi-finished and finished rides
C) executive salaries
D) steel,lumber,and aluminum used in construction of rides

Question

Quizplus · Accepted Answer

Steel, lumber, and aluminum are materials used in the construction of amusement park rides and are considered variable costs because their usage varies based on the level of production. The other options are fixed costs or indirect costs that do not vary directly based on the level of production.

Which of the Following Is Most Likely to Be a Variable