Which is most clearly a variable cost?
A)Rent
B)Insurance premiums
C)Salaries of employees under long-term contract
D)Interest payments
E)Wages of production workers

Question

Quizplus · Accepted Answer

Wages of production workers are directly related to the level of production, which makes them a variable cost. The other options are fixed costs, as they do not vary based on the level of production.

Which Is Most Clearly a Variable Cost