PRC-3 · Chapter 12 · Question 26 of 69
Which of the following is a classic example of a 'Variable Cost' in a furniture manufacturing plant?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The raw timber and varnish used to make the tables
Explanation
Variable costs are costs that change proportionally with the volume of production. More tables produced requires more timber and varnish.
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