Variable cost does not include A) raw materials and resources. B) staff and management salaries. C) material handling and freight. D) direct labor and packaging.

Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of output or production. This means that as production increases, variable costs also increase. Raw materials, resources, material handling, freight, direct labor, and packaging are all examples of variable costs. However, staff and management salaries are considered fixed costs because they do not change with changes in production.

Variable Cost does Not Include