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Which of the following is the best example of a variable cost?
Suggested Answer: D
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28 comments · newest first
MA
Mayra
4 months ago
True, but maintenance is often fixed. Shipping is definitely variable.
FE
Felix
6 months ago
I’m not sure. C) Maintenance can vary too, right?
AU
Audry
6 months ago
Agreed, Alex. Variable costs depend on production levels.
RE
Remedios
6 months ago
I think D) Shipping is the best choice. It changes with sales.
JO
Johnathon
6 months ago
100% agree, shipping is the right answer!
AL
Allene
6 months ago
Wait, are we sure shipping is the best example?
MI
Mickie
7 months ago
I thought maintenance could be variable too?
LE
Lea
7 months ago
Definitely D) Shipping! Makes sense.
SO
Sommer
7 months ago
Shipping costs can vary based on volume.
ED
Edmond
7 months ago
Shipping is the way to go. Unless you're shipping out of this exam, that is. *wink wink*
YA
Yan
7 months ago
Shipping? More like "I'm shipping off this exam question to the next candidate!" Haha, got 'em!
LE
Lemuel
7 months ago
Shipping is the only option that makes sense. The others are all fixed costs. Easy peasy!
ER
Erinn
8 months ago
Audit fees? Really? That's a fixed administrative cost. Shipping is the clear winner here.
LO
Lorean
8 months ago
Maintenance could be variable, but it's not the best example. Shipping all the way!
JO
Johnna
8 months ago
Rent is a fixed cost, not a variable one. Definitely going with shipping on this one.
AD
Adelina
9 months ago
I think shipping is the best example of a variable cost. It really depends on the volume of orders.
LA
Lauran
9 months ago
I’m really unsure about this one. Audit fees seem fixed, but I can’t remember if maintenance can vary too.
QU
Quentin
9 months ago
I practiced a similar question where shipping was the answer, so I might go with D) again here.
TH
Thersa
9 months ago
I remember discussing fixed vs. variable costs, but I'm not entirely sure if maintenance is considered variable.
LU
Luisa
9 months ago
I think variable costs change with production levels, so I'm leaning towards D) Shipping.
DE
Deja
9 months ago
I think I've got a good handle on variable vs. fixed costs. I'm going to go with D) Shipping as the best example of a variable cost on this question.
AD
Adelina
10 months ago
Shipping seems like the obvious choice here. That's the one cost that would go up or down depending on how much you're producing or selling, right?
FR
Francoise
10 months ago
I'm a little unsure about this one. I know variable costs are supposed to change, but I'm not totally confident which of these options fits that description best.
MI
Minna
10 months ago
Okay, I've got this. Variable costs are the ones that change with production or sales volume, so I'm pretty sure the answer is D) Shipping.
CA
Catarina
10 months ago
Hmm, this one seems tricky. I'll need to think through the differences between fixed and variable costs to decide on the best example.
SH
Shonda
4 months ago
Definitely shipping! It’s directly tied to sales volume.
DE
Delsie
4 months ago
True! Maintenance can also vary, but not as much as shipping.
JO
Josefa
4 months ago
I think shipping is a variable cost. It changes with the amount shipped.