Asked by
Lokendra Kumar
on Nov 04, 2024
Verified
Which of the following is most likely to be a variable cost for a firm?
A) the interest payments made on loans
B) the franchiser's fee that a restaurant must pay to the national restaurant chain
C) the monthly rent on office space that it leased for a year
D) the payroll taxes that are paid on employee wages
Variable Cost
Costs that change in proportion to the level of activity or production volume.
Payroll Taxes
Taxes imposed on employers and employees, calculated as a percentage of the wages that employers pay their staff.
- Gain an understanding of the distinctions between fixed, variable, and overall costs.
Verified Answer
CP
Learning Objectives
- Gain an understanding of the distinctions between fixed, variable, and overall costs.