Which of the following is likely a variable cost?

A) Hourly wages
B) Fuel
C) Raw materials
D) Shipping
E) All of these choices are variable costs.

Question

Which of the following is likely a variable cost?A) Hourly wagesB) FuelC) Raw materialsD) ShippingE) All of these choices are variable costs.

Jordan Sargent · Accepted Answer

Final Answer : E, Explanation :  All of these choices are variable costs because they change in proportion to the level of production or business activity. Hourly wages may vary with the number of hours worked, fuel costs can fluctuate with usage, raw materials costs depend on the quantity needed for production, and shipping costs vary with the volume of goods being distributed.

Which of the following is likely a variable cost?

A) Hourly wages
B) Fuel
C) Raw materials
D) Shipping
E) All of these choices are variable costs.

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