question 2 (3.33 points)\nwhat is included in variable cost? select one best answer.\na) variable operating…

question 2 (3.33 points)\nwhat is included in variable cost? select one best answer.\na) variable operating expense\nb) direct cost\nc) fixed operating expense\nd) both a and b

question 2 (3.33 points)\nwhat is included in variable cost? select one best answer.\na) variable operating expense\nb) direct cost\nc) fixed operating expense\nd) both a and b

Answer

Brief Explanations:

To determine what's included in variable cost:

  • Option A: Variable Operating Expense (e.g., raw materials, hourly labor) changes with production volume, so it’s a variable cost.
  • Option B: Direct Cost (e.g., direct materials, direct labor) is tied to production and varies with output, so it’s a variable cost.
  • Option C: Fixed Operating Expense (e.g., rent, salaries) does not change with production volume, so it’s not a variable cost.
  • Option D: Since both A (Variable Operating Expense) and B (Direct Cost) are variable costs, D is correct.

Answer:

D) Both A and B