Asked by Mariah Donnally on May 20, 2024
Verified
For a restaurant,all the following are examples of variable costs,except
A) Labor costs
B) Cost of raw materials
C) Rents on dining space
D) None- all of them are variable costs
Variable Costs
Costs that change in proportion to the level of goods or services that a business produces.
Labor Costs
The total expenses incurred by employing labor, including wages, salaries, and benefits.
Raw Materials
The basic material from which a product is made, often used in manufacturing and production processes.
- Distinguish between fixed, variable, and sunk costs in diverse business situations.
Verified Answer
BA
Brianna AlfaroMay 20, 2024
Final Answer :
C
Explanation :
The rent on dining space is a fixed cost as it remains the same regardless of the number of meals prepared or sold. The other options listed, labor costs and cost of raw materials, are variable costs as they are directly related to the amount of production or sales.
Learning Objectives
- Distinguish between fixed, variable, and sunk costs in diverse business situations.