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Which of the following is the best example of a variable cost?

A. The corporate president’s salary.

B. Cost of raw material.

C. Interest charges.

D. Property taxes.

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Question added by Hossam Mohamed , Senior Accountant , Allied Arab Assurance Brokerage
Date Posted: 2015/08/14
Md. Moshiur Rahman Sumon
by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited

Among the others variable costs i.e. direct labor, raw materials and others I think Cost of raw material is the best example like a variable cost.

 

B) Cost of raw material is a correct  answer

Madan Reddy
by Madan Reddy , Chief Accountant , NTI (Babcock International Group Company)

Cost of raw materials are the Variable cost

Badar Khan
by Badar Khan , Accounts cum administrative assistant , Al Qassimia Drivng Training Centre.Sharjah

the cost of raw material-----------------------------

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