The example of a variable cost among the options given is d. Direct materials used in production.

Here's why:

Variable costs are those that change in proportion to the level of production or business activity.

a. Property taxes on the factory building - This is a fixed cost. It does not change with the level of production.
b. Factory manager's salary - This is also a fixed cost. The salary is paid regardless of the level of production.
c. Depreciation on factory equipment - This is a fixed cost as well. The depreciation of equipment happens over time, not based on the level of production.
d. Direct materials used in production - This is a variable cost. The more you produce, the more materials you need. Therefore, this cost varies with the level of production.

Question

The example of a variable cost among the options given is d. Direct materials used in production.

Here's why:

Variable costs are those that change in proportion to the level of production or business activity.

a. Property taxes on the factory building - This is a fixed cost. It does not change with the level of production.
b. Factory manager's salary - This is also a fixed cost. The salary is paid regardless of the level of production.
c. Depreciation on factory equipment - This is a fixed cost as well. The depreciation of equipment happens over time, not based on the level of production.
d. Direct materials used in production - This is a variable cost. The more you produce, the more materials you need. Therefore, this cost varies with the level of production.

Knowee AI · Accepted Answer

The example of a variable cost among the options given is d. Direct materials used in production.

Here's why:

Variable costs are those that change in proportion to the level of production or business activity.

a. Property taxes on the factory building - This is a fixed cost. It does not change with the level of production.
b. Factory manager's salary - This is also a fixed cost. The salary is paid regardless of the level of production.
c. Depreciation on factory equipment - This is a fixed cost as well. The depreciation of equipment happens over time, not based on the level of production.
d. Direct materials used in production - This is a variable cost. The more you produce, the more materials you need. Therefore, this cost varies with the level of production.

Which of the following is an example of a variable cost?Question 21Answera.Property taxes on the factory buildingb.Factory manager's salaryc.Depreciation on factory equipmentd.Direct materials used in productionClear my choice

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