Asked by eliza mooradian on Jul 14, 2024
Verified
Which of the following is not an example of a cost that varies in total as the number of units produced changes?
A) electricity per KWH to operate factory equipment
B) direct materials cost
C) insurance premiums on factory building
D) wages of assembly worker
Insurance Premiums
The amount paid for insurance policies, covering risks over a period.
Direct Materials
Primary components used in the manufacturing of products, which are directly traceable to the finished product.
Electricity
A form of energy resulting from the existence of charged particles, widely used for lighting, power, and other applications.
- Tell apart fixed, variable, and mixed costs in practical case studies.
Verified Answer
DS
Dorreen San PedroJul 21, 2024
Final Answer :
C
Explanation :
Insurance premiums on factory building are generally fixed costs that do not change with the number of units produced.
Learning Objectives
- Tell apart fixed, variable, and mixed costs in practical case studies.