Ask Question
8 September, 07:07

Which of the following is an example of a variable cost?

A.

Rent for a warehouse

B.

Paychecks for salaried employees

C.

Materials for making a product

D.

Monthly payments on a loan

answer would be C

+4
Answers (1)
  1. 8 September, 07:08
    0
    C) Materials for making a product.

    Variable costs are costs that go up and down based on a variety of factors. Rent for a warehouse will be the same every month for the duration of the lease, and won't change based on production or anything else.

    Salaried employees are paid a fixed amount regardless of their hours each week (unlike hourly/non-exempt employees) so this would not change either.

    Finally, the payments on a loan are generally the same from month to month.

    Materials used in making a product are a variable cost because if you make more of the product, your cost for materials goes up. If you make less of it, the cost goes down.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following is an example of a variable cost? A. Rent for a warehouse B. Paychecks for salaried employees C. Materials for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers