Which of the following is an example of variable costs?
A) Project team members' salaries
B) Printer paper costs
C) Hardware rental charges
D) Property taxes

Question

Quizplus · Accepted Answer

Variable costs are expenses that vary in proportion to the level of output or sales revenue, such as the cost of raw materials or supplies needed to produce a product or service. Printer paper costs are a good example of a variable cost as the more you print, the more paper you need to purchase.

A) Project team members' salaries are an example of a fixed cost as they are usually paid a predetermined amount whether the project is successful or not. 
C) Hardware rental charges can be either a fixed or variable cost, depending on the terms of the rental agreement. 
D) Property taxes are a fixed cost as they are a recurring expense that is not affected by changes in output or sales revenue.

Which of the Following Is an Example of Variable Costs