An example of variable costs might be:

Question

BlackTom AI · Accepted Answer

The question asks for an example of variable costs among the given options.
Option 1: 'Property taxes' — These are generally fixed costs that do not vary with the level of activity in the short term, so this is not an example of variable costs.
Option 2: 'truck payments' — Typically considered a fixed cost (capital/loan payments or depreciation) that remains stable regardless of production or sales levels, so not variable.
Option 3: 'A Lease' — Leases are usually contractual fixed costs unless the lease terms change with usage or time, which would be a special case; in standard accounting, this is treated as fixed rather than variable.
Option 4: 'Food costs' — Food costs tend to fluctuate with sales volume and production needs, making them a classic example of variable costs that rise as more food is prepared or sold and fall when activity decreases.
In summary, among the options, the one that aligns with the concept of variable costs is the last item, Food costs, while the others are typically fixed costs that do not vary directly with activity level.

VPAB13H3 F LEC01 Final Exam Quiz

An example of variable costs might be:

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