A car lease payment is computed based solely on the number of miles driven.This is an example of a ________.
A)purely variable cost
B)mixed cost
C)step cost
D)stair cost

Question

Quizplus · Accepted Answer

A purely variable cost is a cost that varies in direct proportion to changes in an activity or driver. In this case, the car lease payment varies depending on the number of miles driven, which is a clear example of a purely variable cost.

A Car Lease Payment Is Computed Based Solely on the Number