Table 13-1
Measures of Cost for Splashy Cardboard Kayak Factory.
-Refer to Table 13-1.What is the variable cost of producing zero kayaks?
A)$0
B)$2
C)$20
D)it can't be determined from the information above

Question

Table 13-1
Measures of Cost for Splashy Cardboard Kayak Factory. 
-Refer to Table 13-1.What is the variable cost of producing zero kayaks?
A)$0 
B)$2 
C)$20 
D)it can't be determined from the information above

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of production. Therefore, if no kayaks are produced, there should be no variable costs associated with production.

Table 13-1 Measures of Cost for Splashy Cardboard Kayak Factory