Which one of the following is most likely a variable cost?
A)office rent
B)property taxes
C)property insurance
D)direct labor costs
E)management salaries

Question

Quizplus · Accepted Answer

Direct labor costs are most likely a variable cost as they tend to increase or decrease with changes in the level of production. The rest of the options are fixed costs that do not change significantly with changes in production levels.

Which One of the Following Is Most Likely a Variable