________ is (are) most likely a variable cost for a firm.
A) The monthly lease payment on a delivery truck that is leased for three years
B) The plumbing company's annual licensing fee
C) The quarterly payments for a two-year maintenance contract for copy machines
D) Monthly health insurance expenses for employees

Question

Quizplus · Accepted Answer

Variable costs change with the level of production or business activity. Monthly health insurance expenses for employees can vary with the number of employees, which can change with the level of business activity, making it a variable cost. Choices A, B, and C represent fixed costs, as they do not change with the level of production or business activity.

________ Is (Are) Most Likely a Variable Cost for a Firm