Question

In: Accounting

Which of the following is not an example of a cost that varies in total as the number of units produced changes?


Which of the following is not an example of a cost that varies in total as the number of units produced changes? 


a. wages of assembly worker 

b. straight-line depreciation on factory equipment 

c. direct materials cost 

d. electricity per KWH to operate factory equipment

Solutions

Expert Solution

Answer : Straight-line depreciation on factory equipment

Explanation : Straight-line depreciation on factory equipment is not an example of cost that varies in total as the number of units produced changes because its a fixed expense. All other expense given are variable expense and that varies in total as the number of units produced changes.

ekkarill92 answered 2 years ago
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