Question

Which of the following is a variable cost for a company that makes bread? A. The rent for a warehouse B. Bread ingredients C. An oven D. A salaried worker

Answer 1

Answer B. Bread ingredients is correct because the cost of the ingredients will change based on the amount of ingredients they need to purchase; it will likely not remain constant from week to week.

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Answer 2

Answer B. Bread ingredients is correct because the cost of the ingredients will change based on the amount of ingredients they need to purchase; it will likely not remain constant from week to week. A variable cost for a bread bakery would be one that fluctuates with the rise and fall of production levels of the bread. Answers A, C, and D are fixed costs.