SSC
GENERAL ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
A firm manufacturing china plates has the following costs.Which is a variable cost?
|
|
building insurance
|
|
|
interest on a loan
|
|
|
raw materials
|
|
|
rent of property
|
Explanation:
Detailed explanation-1: -Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.
Detailed explanation-2: -Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs.
There is 1 question to complete.