One likely variable cost of the e-waste factory.

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Multiple Choice

One likely variable cost of the e-waste factory.

Explanation:
Variable costs change in total with the level of production. Transport of circuit boards fits this because as more boards are produced and moved, the total transport expense rises accordingly. Rent, factory depreciation, and management salaries are typically fixed costs—they don’t vary with how much is produced in the period—so they aren’t considered variable costs.

Variable costs change in total with the level of production. Transport of circuit boards fits this because as more boards are produced and moved, the total transport expense rises accordingly. Rent, factory depreciation, and management salaries are typically fixed costs—they don’t vary with how much is produced in the period—so they aren’t considered variable costs.

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