Ask Question
26 September, 14:55

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

Question 7 options:

Rent

Insurance

Professional fees

Utilities

+3
Answers (2)
  1. 26 September, 15:12
    0
    Utilities

    Explanation:

    Variable costs are expenses that vary proportionately with the changes in production level. Should production level rise, variable costs increases. Variable costs form the majority of the direct cost of production.

    Unlike fixed costs, the monthly bill for variable costs will keep fluctuating. In this scenario, utilities represent the variable cost. Expenses on electricity, water and other consumables will vary from time to time. With a high level of production, consumption of power and water will be high.

    Rent and insurance cost will remain the same regardless of production level. A professional fee is an overhead expense. It is not an input in the production process.
  2. 26 September, 15:24
    0
    Yes. Utilities
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? Question 7 options: Rent Insurance Professional fees Utilities ...” 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