Which one of the following is most likely a variable cost?

Question

Quizplus · Accepted Answer

Direct labour costs are most likely a variable cost since they fluctuate based on the level of production or sales made. The more units produced or sold, the higher the direct labour costs will be. The other options are more likely to be fixed costs that do not vary with production or sales levels. Office rent is a fixed cost that a company pays regardless of how many units are produced or sold. Property taxes and property insurance are also generally fixed costs that do not vary with production levels. Management salaries are also typically fixed costs that do not vary with production or sales levels.

Which One of the Following Is Most Likely a Variable