For a large firm that produces and sells automobiles,which of the following costs would be a variable cost
A)the $20 million payment that the firm pays each year for accounting services
B)the cost of the steel that is used in producing automobiles
C)the rent that the firm pays for office space in Mississauga
D)the cost of a new computer

Question

Quizplus · Accepted Answer

The cost of steel used in producing automobiles would be a variable cost since it would vary depending on how many cars are being produced. The other costs listed are fixed costs, as they do not vary based on the number of cars produced.

For a Large Firm That Produces and Sells Automobiles,which of the Following