Which of the following would likely be considered a variable cost for a given time period?
A) Sales commissions.
B) Salary of the Chief Financial Oﬃcer.
C) Automobile lease expense.
D) Membership fee with the local seller's consortium.
E) Insurance for the corporation's buildings.

Question

Quizplus · Accepted Answer

Sales commissions are typically based on the amount of sales generated in a given time period and therefore would likely be considered a variable cost. The other options are either fixed costs (B and E) or not enough information is given to determine if they are variable or fixed (C and D).

Which of the Following Would Likely Be Considered a Variable