Which one of the following is most likely a variable cost?
A) Oﬃce rent.
B) Property taxes.
C) Property insurance.
D) Direct labor costs.
E) Management salaries.

Question

Quizplus · Accepted Answer

Direct labor costs are typically considered variable costs as they fluctuate with changes in production levels or sales volume. The other options listed are typically considered fixed costs as they tend to remain relatively constant regardless of changes in production or sales levels.

Which One of the Following Is Most Likely a Variable