Which of the following is most likely to be a variable cost?

NetherCraft 0
OThe cost of property insurance OThe cost of the machinery used in the production process OThe cost of furniture used by the staff OThe cost of electricity used in the production process O 9) Which of the following always increases when output increases? OAverage fixed costs Variable costs Marginal costs OAverage total costs 10) Which of the following items would be considered a sunk cost: textbook that can be resold, non-refundable tuition payment, laptop that can be used for another class? O Textbook and laptop Tuition payment OTextbook and tuition payment OTextbook, tuition payment, and laptop

Also Check This  Need exact quotes (good ones/meaningful) with page numbers from the book the pact?



The correct option is (d) – the cost of electricity used in
production process.

Variable cost is a cost that varies with the level of output. In
the short-run, variable costs include labor and raw material costs
and in the long run rent, wages, and all other costs.


The correct option is (b).

A variable cost varies with production output. Variable costs
are those costs that vary depending on a company’s production
volume; they rise as production increases and fall as production

Also Check This  How do i get rid of a voodoo doll safely?


The correct option is (b) – non refundable tuition fee

Sunk costs are retrospective costs that have already been
incurred and cannot be recovered

Leave a Reply

Your email address will not be published. Required fields are marked *