Which of the following is not an example of a variable cost?
A) Straight-line depreciation on a machine expected to last 5 years.
B) Wages paid to assembly line workers at a local manufacturing plant.
C) Timber used to make outdoor furniture.
D) Commissions paid to sales personnel.

Question

Quizplus · Accepted Answer

Straight-line depreciation is a fixed cost, as it does not vary based on the level of production or sales. The other options listed are examples of variable costs, as they increase or decrease based on production or sales levels.

Which of the Following Is Not an Example of a Variable