Variable costs might include all of the following EXCEPT:
A) direct labor to produce a firm's product
B) direct materials to produce a firm's product
C) salary of the firm's accountant
D) utilities
E) worker's compensation insurance

Question

Quizplus · Accepted Answer

Variable costs are costs that change in proportion to the level of production or activity, including costs like direct labor, direct materials, utilities, and worker's compensation insurance. The salary of the firm's accountant is a fixed cost, meaning it does not vary with production or activity levels.

Variable Costs Might Include All of the Following EXCEPT