Tiffany Smith owns a barbeque restaurant. One expense that Tiffany watches closely is the cost of propane, which she uses to heat her ovens. The more barbeque food Tiffany sells, the more it cost her for propane on a monthly basis. For Tiffany, the cost of propane is a:
A) variable cost
B) secondary cost
C) resultant cost
D) fixed cost
E) irregular cost

Question

Quizplus · Accepted Answer

The cost of propane is directly related to the amount of barbeque food Tiffany sells, making it a variable cost. As sales increase, the cost of propane will also increase, and as sales decrease, the cost of propane will also decrease.

Tiffany Smith Owns a Barbeque Restaurant