Asked by Vishal Sharma on Jul 22, 2024
Verified
For a moving company,all of the following are examples of variable costs,except
A) Gasoline costs
B) Truck rents
C) Marketing costs
D) None of the above
Variable Costs
Costs that vary directly with the level of production or the volume of services provided.
Gasoline Costs
The expenses incurred from purchasing gasoline, often a significant variable cost for motorists and businesses reliant on transportation.
Truck Rents
Fees charged for leasing or renting trucks, typically used for transporting goods or materials.
- Point out examples of fixed, variable, and sunk costs in numerous entrepreneurial contexts.
Verified Answer
PR
Prabh RiyatJul 29, 2024
Final Answer :
C
Explanation :
Gasoline costs and truck rents are directly related to the number of moves a company makes, thus making them variable costs. However, marketing costs are usually fixed costs that don't vary based on the number of moves a company makes.
Learning Objectives
- Point out examples of fixed, variable, and sunk costs in numerous entrepreneurial contexts.