PRC-3 · Chapter 12 · Question 13 of 69
Which of the following would strictly be considered a 'Variable Cost' for an automobile manufacturing firm?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The steel and rubber purchased to assemble the cars
Explanation
Variable costs change directly with the level of production. If more cars are built, more steel and rubber must be purchased.
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