Ask Question
17 May, 12:16

Which of the following is not an example of a cost that varies in total as the number of units produced changes? a. direct materials cost b. wages of assembly worker c. electricity per KWH to operate factory equipment d. insurance premiums on factory building g

+5
Answers (1)
  1. 17 May, 15:44
    0
    The correct answer is letter "D": insurance premiums on factory building.

    Explanation:

    Manufacturing companies can have fixed costs, variable costs, and mixed costs. Fixed costs are those whose total costs do not vary when the production volume changes. Rent and insurance are examples of fixed costs.

    Variable costs are those that fluctuate according to the changes in production levels. Direct costs materials and sales representatives' commissions are examples of variables costs. Mixed costs are a combination of fixed and variables costs.

    Therefore, insurance premiums on a factory building is not an example of variable costs since it is a fixed cost.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following is not an example of a cost that varies in total as the number of units produced changes? a. direct materials cost ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers