Which of the following is most likely to be a variable cost?

Name: Which of the following is most likely to be a variable cost?
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Question

Quizplus · Accepted Answer

Direct labor is most likely to be a variable cost as it varies with the level of production or output. Other options mentioned such as depreciation of a factory building, factory janitor salaries, and total costs of producing products may be fixed costs as they do not necessarily vary with the level of production.

Which of the Following Is Most Likely to Be a Variable