Multiple choice...Anyone?
Fixed Costs and Variable Costs
Which of the following is an example of a variable cost?
a. Insurance premium for fire insurance on the factory building
b. The salary of the company president
c. Wood used to make custom tables
d. Rent for use of a storage warehouse
e. Depreciation on the factory building

Question

anonymous · Answer

c.

anonymous · Answer

Any cost which does not increase with the marginal increase in production is a fixed cost and the opposite is true for variable costs. The answer is c. Wood used to make custom tables,because one has to buy wood make each additional table.

anonymous · Answer

MWAH!!  Thats a virtual kiss for "thank you".