ECONOMICS

COST ACCOUNTING

VARIABLE COSTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is NOT considered as variable input?
A
Worker
B
Building
C
Raw materials
D
Operation manager
Explanation: 

Detailed explanation-1: -The correct answer of this question is power. Explanation: Given-Is not a variable input .

Detailed explanation-2: -The most common example of a variable input is labor. A variable input provides the extra inputs that a firm needs to expand short-run production. In contrast, a fixed input, like capital, provides the capacity constraint in production.

Detailed explanation-3: -Variable inputs are those inputs of production that a firm can use as per its requirement and make changes in it easily. For example, raw materials of production, labor, capital, etc.

Detailed explanation-4: -Variable inputs are the production inputs that can be altered in the short-run, for example, the business manager can easily use a greater quantity or a lesser quantity of the input during this production period.

There is 1 question to complete.