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

Question

Quizplus · Accepted Answer

Variable costs change with the level of production or sales volume. The cost of maintaining inventory is a variable cost because it fluctuates with the amount of inventory held, which is directly related to production and sales levels.

Which of the Following Is a Typical Example of a Variable