Variable costs are those that change in proportion to the level of output or sales. They increase when production increases and decrease when production decreases.

1) Staff salary: This is typically a fixed cost, as it does not change with the level of output. However, if staff are paid on a commission basis or if overtime is required during busy periods, this could be considered a variable cost.

2) Tax expense: This is generally a fixed cost, as it is based on the company's income and not on the level of output.

3) Advertisement expense: This can be a variable cost if the amount spent on advertising changes with the level of output or sales. For example, a company may spend more on advertising during a product launch or busy shopping season.

4) Business Commission: This is typically a variable cost, as it changes with the level of sales. The more sales made, the higher the commission paid.

So, the variable costs among the options given are Staff salary (if it includes commission or overtime) and Business Commission. Therefore, the correct answer is c. 1,4.

Question

Variable costs are those that change in proportion to the level of output or sales. They increase when production increases and decrease when production decreases.

1) Staff salary: This is typically a fixed cost, as it does not change with the level of output. However, if staff are paid on a commission basis or if overtime is required during busy periods, this could be considered a variable cost.

2) Tax expense: This is generally a fixed cost, as it is based on the company's income and not on the level of output.

3) Advertisement expense: This can be a variable cost if the amount spent on advertising changes with the level of output or sales. For example, a company may spend more on advertising during a product launch or busy shopping season.

4) Business Commission: This is typically a variable cost, as it changes with the level of sales. The more sales made, the higher the commission paid.

So, the variable costs among the options given are Staff salary (if it includes commission or overtime) and Business Commission. Therefore, the correct answer is c. 1,4.

Knowee AI · Accepted Answer

Variable costs are those that change in proportion to the level of output or sales. They increase when production increases and decrease when production decreases.

1) Staff salary: This is typically a fixed cost, as it does not change with the level of output. However, if staff are paid on a commission basis or if overtime is required during busy periods, this could be considered a variable cost.

2) Tax expense: This is generally a fixed cost, as it is based on the company's income and not on the level of output.

3) Advertisement expense: This can be a variable cost if the amount spent on advertising changes with the level of output or sales. For example, a company may spend more on advertising during a product launch or busy shopping season.

4) Business Commission: This is typically a variable cost, as it changes with the level of sales. The more sales made, the higher the commission paid.

So, the variable costs among the options given are Staff salary (if it includes commission or overtime) and Business Commission. Therefore, the correct answer is c. 1,4.

Which of the following are variable costs?1) Staff salary2) Tax expense3) Advertisement expense4) Business CommissionQuestion 2Select one:a.2,3b.1,2,3,4c.1,4d.2,4

Question

Solution

Similar Questions

Upgrade your grade with Knowee