Question

    Which of the following is an example of a variable

    charge in a business?
    A Rent Correct Answer Incorrect Answer
    B Salaries Correct Answer Incorrect Answer
    C Raw material costs Correct Answer Incorrect Answer
    D Insurance premiums Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Variable charges are those that change in proportion to the level of business activity. Raw material costs fluctuate depending on production volume and market prices.

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