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

Explanation:

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.

Answer:

B. Hourly employees, C. The yarn used to make a scarf, E. The shampoo used to groom pets