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Which of the following is a variable cost?Group of answer choicesstraight-line depreciationrent expensewages of production workersproperty insurance

Question

Which of the following is a variable cost?Group of answer choicesstraight-line depreciationrent expensewages of production workersproperty insurance

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Solution

The variable cost among the options provided is "wages of production workers". This is because variable costs are those that change in proportion to the level of output or production. In this case, as more workers are hired or as workers work more hours (increased production), the total wage expense will increase. On the other hand, costs such as straight-line depreciation, rent expense, and property insurance are typically fixed costs, as they do not change with the level of output or production.

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