If you operated a small bakery, which of the following would be a variable cost in the short run?
A)baking ovens
B)interest on business loans
C)annual lease payment for use of the building
D)baking supplies (flour, salt, etc.)

Question

Quizplus · Accepted Answer

Variable costs change with the level of production. For a bakery, baking supplies like flour and salt are variable costs because the amount used depends on how much is baked. Fixed costs, such as ovens, interest on loans, and lease payments, do not vary with the level of production in the short run.

If You Operated a Small Bakery, Which of the Following