Asked by
Divya Relangi
on Oct 12, 2024
Verified
Which is most clearly a variable cost?
A) Rent
B) Insurance premiums
C) Salaries of employees under long-term contract
D) Interest payments
E) Wages of production workers
Variable Cost
A cost that changes in proportion to the level of activity or volume of output in a business.
Wages
Payments made to workers for their labor, usually calculated on an hourly, daily, or piecework basis.
Salaries
Salaries refer to the regular payments made by employers to employees, typically on a monthly or bi-weekly basis, in exchange for their labor or services.
- Gain insight into the variance between fixed costs and variable costs and their impact on total cost.
Verified Answer
CN
Learning Objectives
- Gain insight into the variance between fixed costs and variable costs and their impact on total cost.