Question

An example for variable cost in a typical manufacturing plant is _______


 QUESTION 1 

An example for variable cost in a typical manufacturing plant is _______ 

Equipment cost. 

Property taxes 

Labor cost. 

Building cost 


QUESTION 2 

The salvage value is defined as the market value at the end of its useful life minus the disposal costs 

True 

False 

3 0
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Answer #1

Answer 1. Labor cost

reason- Variable cost varies with the output. Labor is varied according to the output level. But property tax, equipment cost and building cost are fixed and cannot be changed when outout level changes.

Answer 2. TRUE

reason- Salvage value is the book vakue of the asset after all depreciation has been accounted for.

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