An example of a variable cost for a cell phone manufacturer is
A) Units sold.
B) Units produced.
C) Minutes talked.
D) Touch screens used in production.

Question

Quizplus · Accepted Answer

Touch screens used in production are a variable cost for a cell phone manufacturer because the cost increases as production increases. The cost of minutes talked is not a variable cost for a cell phone manufacturer, as it does not relate to the raw materials or production process.

An Example of a Variable Cost for a Cell Phone