QUESTION IMAGE
Question
which of the following are examples of variable costs? (select three answers.)
a radio ad
hourly employees
the yarn used to make a scarf
rent of an office space
the shampoo used to groom pets
internet service
Brief Explanations
To determine variable costs, we identify costs that change with production or service volume.
- "Hourly employees": Labor cost varies with hours worked (output).
- "The yarn used to make a scarf": Direct material cost depends on number of scarves produced.
- "The shampoo used to groom pets": Direct material cost varies with number of pets groomed.
Fixed costs (e.g., rent, internet, radio ad) are constant regardless of output.
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B. Hourly employees, C. The yarn used to make a scarf, E. The shampoo used to groom pets