The correct answer is D. Raw materials.

Here's why:

Variable costs are those that change in proportion to the level of a company's production output. In other words, they rise as production increases and decrease as production decreases.

A. Rent paid: This is a fixed cost. It does not change with the level of production. Whether you produce one unit or a thousand, the rent you pay for your business premises remains the same.

B. Management salaries: These are also fixed costs. They do not change with the level of production. A manager's salary is typically set and does not increase if the company produces more.

C. Insurance agreed: This is another fixed cost. The amount you pay for insurance is agreed upon in advance and does not change with the level of production.

D. Raw materials: These are variable costs. The more you produce, the more raw materials you need. Therefore, the cost of raw materials increases with the level of production.

Question

The correct answer is D. Raw materials.

Here's why:

Variable costs are those that change in proportion to the level of a company's production output. In other words, they rise as production increases and decrease as production decreases.

A. Rent paid: This is a fixed cost. It does not change with the level of production. Whether you produce one unit or a thousand, the rent you pay for your business premises remains the same.

B. Management salaries: These are also fixed costs. They do not change with the level of production. A manager's salary is typically set and does not increase if the company produces more.

C. Insurance agreed: This is another fixed cost. The amount you pay for insurance is agreed upon in advance and does not change with the level of production.

D. Raw materials: These are variable costs. The more you produce, the more raw materials you need. Therefore, the cost of raw materials increases with the level of production.

Knowee AI · Accepted Answer

The correct answer is D. Raw materials.

Here's why:

Variable costs are those that change in proportion to the level of a company's production output. In other words, they rise as production increases and decrease as production decreases.

A. Rent paid: This is a fixed cost. It does not change with the level of production. Whether you produce one unit or a thousand, the rent you pay for your business premises remains the same.

B. Management salaries: These are also fixed costs. They do not change with the level of production. A manager's salary is typically set and does not increase if the company produces more.

C. Insurance agreed: This is another fixed cost. The amount you pay for insurance is agreed upon in advance and does not change with the level of production.

D. Raw materials: These are variable costs. The more you produce, the more raw materials you need. Therefore, the cost of raw materials increases with the level of production.

) Which one of the following is a variable cost?Select one answer. (1)A Rent paidB Management salariesC Insurance agreedD Raw materials

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