Which of the following is a typical example of a variable cost?
A)rent on a building
B)executive salaries
C)insurance premiums
D)lease on delivery trucks
E)cost of maintaining inventory

Question

Quizplus · Accepted Answer

The cost of maintaining inventory is a typical example of a variable cost, as it varies based on the level of inventory held by a company. The more inventory a company holds, the higher the cost of maintaining it will be. Rent on a building, executive salaries, insurance premiums, and lease on delivery trucks are examples of fixed costs, as they do not fluctuate based on the level of production or sales.

Which of the Following Is a Typical Example of a Variable