Laverne's Soda Shop wishes to decrease variable costs. Which of the following options should she consider?

Question

Quizplus · Accepted Answer

Direct labor costs are the costs associated with the people involved in production, such as wages and benefits. By decreasing these costs, Laverne's Soda Shop can reduce their variable costs without sacrificing the quality of their product. Decreasing advertising costs or rent may not have a significant impact on variable costs, and increasing equipment rentals would actually increase costs.

Laverne's Soda Shop Wishes to Decrease Variable Costs