Question
An example of a variable cost is Blank______.
Multiple choice question.
direct labor used to manufacture the product
insurance expenses
management salaries
rent for the production facility
Multiple choice question.
direct labor used to manufacture the product
insurance expenses
management salaries
rent for the production facility
Answers
GPT-4o mini
The correct answer is **direct labor used to manufacture the product**.
Variable costs change with the level of production, and direct labor costs generally fall into this category because they increase as more products are manufactured.
Variable costs change with the level of production, and direct labor costs generally fall into this category because they increase as more products are manufactured.