Which of the following is a variable cost?

Question

Quizplus · Accepted Answer

Raw materials are a variable cost as the cost increases or decreases with changes in the level of production. The leasehold cost of a building and insurance on the factory's physical plant are fixed costs as they do not change with changes in production levels. The cost of a marketing research report is typically a one-time or periodic expense and not directly related to production levels, therefore it is not a variable cost.

Which of the Following Is a Variable Cost