Which of the following would most likely be classified as a variable cost in a breakeven analysis for a furniture manufacturer?
A) Office rent
B) Insurance on delivery truck
C) Cost of lumber and upholstery
D) Property taxes

Question

Quizplus · Accepted Answer

The cost of lumber and upholstery is most likely to be variable as it directly relates to the amount of furniture being produced. The other options listed are more likely to be fixed costs.

Which of the Following Would Most Likely Be Classified as a Variable