PRC-3 · Chapter 12 · Question 40 of 69
Which of the following is a classic example of a 'Variable Cost' in a commercial bakery?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The flour and sugar used to bake the cakes
Explanation
Variable costs change in direct proportion to the volume of output. Producing more cakes directly requires purchasing more flour and sugar.
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