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JulijaS [17]
3 years ago
8

Which of the following is an example of a variable cost?

Business
2 answers:
kifflom [539]3 years ago
8 0

Answer:

Utilities

Explanation:

Variable costs are expenses that vary proportionately with the changes in production level. Should production level rise, variable costs increases. Variable costs form the majority of the direct cost of production.

Unlike fixed costs, the monthly bill for variable costs will keep fluctuating. In this scenario, utilities represent the variable cost. Expenses on electricity, water and other consumables will vary from time to time. With a high level of production, consumption of power and water will be high.  

Rent and insurance cost will remain the same regardless of production level. A professional fee is an overhead expense. It is not an input in the production process.

lukranit [14]3 years ago
5 0

Answer:

Yes. Utilities

Explanation:

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