Assume you are planning a spring break ski trip to Colorado.You are preparing a budget of your costs.You are staying at a lodge that has a special where the lodge charges you $2 for each ski lift ride.You believe you will ride the ski lift 40 times during the week,so you budget $80.The ski lift charge is an example of a
A)fixed cost.
B)variable cost.
C)mixed cost.
D)step cost.

Question

Quizplus · Accepted Answer

A variable cost is a cost that changes in direct proportion to changes in the level of activity or volume of output, in this case, the number of ski lift rides. The cost of $2 per ride varies depending on how many times you ride the ski lift, hence it is a variable cost.

Assume You Are Planning a Spring Break Ski Trip to Colorado.You