Business FinancesQuestion 309 of 1605
Which of the following is a VARIABLE cost that rises and falls with the volume of construction work performed?
a.Concrete and lumber purchased for active jobs
b.Annual general liability insurance premium
c.Monthly office lease payment
d.The contractor's annual CSLB license renewal fee
Explanation
Materials such as concrete and lumber are variable costs because the amount spent rises and falls directly with job volume. Insurance, office lease, and license fees stay the same regardless of how many jobs run.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)