Business FinancesQuestion 309 of 690
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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