A beach resort in Bali builds 24 villas with private pools. They also establish two restaurants using state-of-the-art equipment (such as multipurpose ovens, freezers, and food processors). Meals are prepared using organic, locally sourced vegetables and meat. The hotel also uses water from the town supplier. Based on this scenario, what are the variable costs for the beach resort?

Question

Quizplus · Accepted Answer

The cost of organic vegetables is a variable cost because it varies based on the amount of meals prepared and the market price of the vegetables. The cost of water from the town supplier is also a variable cost as it varies based on the amount of water used by the resort. The other options listed are fixed costs as they do not vary based on the amount of meals or water used.

A Beach Resort in Bali Builds 24 Villas with Private