Which of the following is most likely to be a variable cost for a firm?
A) the taxes that are paid on employee wages
B) the interest payments made on loans
C) the franchiser's fee that a restaurant must pay to the national restaurant chain
D) the monthly rent on office space that it leased for a year

Question

Quizplus · Accepted Answer

Variable costs change with the level of output or activity. Taxes on employee wages are variable because they fluctuate with the number of employees and hours worked.

Which of the Following Is Most Likely to Be a Variable