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Q: Which of the following is NOT an example of variable costs?
  • A. Raw Material
  • B. Distribution
  • C. Rent
  • D. Packaging
Correct Answer: Option C - Rent is an example of fixed cost, not of variable costs. Variable cost is a production expense that increases or decreases depending on changes in a company's manufacturing activity. For example variable costs are- Raw Material, Distribution, and Packaging expenses.
C. Rent is an example of fixed cost, not of variable costs. Variable cost is a production expense that increases or decreases depending on changes in a company's manufacturing activity. For example variable costs are- Raw Material, Distribution, and Packaging expenses.

Explanations:

Rent is an example of fixed cost, not of variable costs. Variable cost is a production expense that increases or decreases depending on changes in a company's manufacturing activity. For example variable costs are- Raw Material, Distribution, and Packaging expenses.