Question

Supplies are an example of a(n) _____.

Responses

fixed cost
fixed cost

opportunity cost
opportunity cost

variable cost
variable cost

none of the above
none of the above

Answer 1

variable cost

Explanation: Supplies (like paper, ink, small parts) typically vary with the level of activity or production, so they are treated as a variable cost. They are not an opportunity cost (that's the value of the next-best alternative) and not a fixed cost (which stays constant regardless of output).