Which of the following is not an example of a variable cost?
A)Straight-line depreciation on a machine that has a ﬁve-year service life.
B)Wages of manufacturing workers whose pay is based on hours worked.
C)Tires used in the production of tractors.
D)Aluminum used to make patio furniture.
E)Commissions paid to sales personnel.

Question

Quizplus · Accepted Answer

Straight-line depreciation is a fixed cost, not a variable cost. Variable costs vary with the level of production or sales, while fixed costs remain constant regardless of production or sales levels. B, C, D, and E are all examples of variable costs.

Which of the Following Is Not an Example of a Variable