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Which of the following would definitely be an example of a varoable cost for Bikes Unlimited...

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Question

Accounting

Which of the following would definitely be an example of a varoablecost for Bikes Unlimited (a company thst produces and sells moutainbikes)?
a. Rent on the production facility
b. Depreciation of productiom equipment
c. The utilities cost (electricity)
d. The cost of pedals bought from a supplier

Answer & Explanation Solved by verified expert
3.7 Ratings (648 Votes)
Variable Costs are those costs which vary with level of production They are not supposed to remain constant Their basic nature is to change either due to volume level or various other factors but they tend to change They may be lower today but higher in future and vice versa also Now let us discuss the various options given    See Answer
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