Commercial Pilot Licence (CPAER) – Canada · Question
Which of the following is an example of a variable cost for a manufacturing company?
Direct materials are variable costs because their total cost changes in direct proportion to changes in the volume of production. Factory rent, straight-line de
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Question: Which of the following is an example of a variable cost for a manufacturing company?
Answer options:
- Factory rent.
- Depreciation of production machinery (straight-line method). ✅ Direct materials.
- Salaries of administrative staff.
Correct answer: Direct materials.
Explanation: Direct materials are variable costs because their total cost changes in direct proportion to changes in the volume of production. Factory rent, straight-line depreciation, and administrative salaries are typically fixed costs within a relevant range.
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Question explanations
- What is the minimum visibility required for a commercial VFR flight in Class D airspace at or below 3,000 feet
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- Scenario 1: A commercial pilot conducting an IFR flight in Canadian airspace must hold which of the following
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