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Commercial Pilot Licence (CPAER) – Canada · Question

Which of the following costs would most likely be classified as a variable cost for a manufacturing company?

Direct materials are typically a variable cost because the total cost of direct materials increases or decreases in direct proportion to the volume of units pro

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Question: Which of the following costs would most likely be classified as a variable cost for a manufacturing company?

Answer options:

  • Factory rent expense.
  • Depreciation of production machinery. ✅ Direct materials used in production.
  • Salaries of production supervisors.

Correct answer: Direct materials used in production.

Explanation: Direct materials are typically a variable cost because the total cost of direct materials increases or decreases in direct proportion to the volume of units produced.

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