Which is an example of variable costs?
A) Project team members' salaries
B) Printer paper costs
C) Hardware rental charges
D) Property taxes

Question

Quizplus · Accepted Answer

Variable costs are expenses that change in proportion to the activity or volume of a business. Printer paper costs are a clear example of variable costs since the more paper a company uses, the higher the cost. A is not an example of variable costs because project team members' salaries are fixed costs, which remain unchanged regardless of business activities. C and D are also not examples of variable costs. Hardware rental charges and property taxes are both fixed costs, which do not vary with the volume of business activities.

Which Is an Example of Variable Costs