Question

Indicate which of the following is a variable cost?(a) Payment of rent on building(b) Cost of Machinery(c) Interest payment on Loan taken from bank(d) Cost of raw material

Answer 1

i think it's D)cost of raw materials

Answer 2

Answer:

d) Cost of Raw materials

Explanation:

A variable cost is an expense that changes in proportion to production output or sales. Hence, the purchase of raw materials is a variable cost.