Which of the following is a typical example of a variable cost?
A) Sales commissions
B) Rent
C) Depreciation
D) Salaries

Question

Quizplus · Accepted Answer

Sales commissions are a variable cost as they tend to increase or decrease depending on the level of sales. The more sales a company has, the higher the commission payout will be. Rent, depreciation, and salaries are typically fixed costs, as they do not fluctuate with changes in sales or production levels.

Which of the Following Is a Typical Example of a Variable