Question

List four examples of variable costs which are likely to be incurred by a

manufacturer of supermarket ready meals

Answer 1

The variable costs for a manufacturer of supermarket ready meals typically include raw materials, direct labor costs, utilities, and packaging costs, all of which vary with the production levels.

Step-by-step explanation:

The variable costs for a manufacturer of supermarket ready meals might include:

• Cost of raw materials like vegetables, meat, and spices, which vary depending on the amount of meals produced.
• Direct labor costs, which refer to the wages paid to workers directly involved in preparing and packaging the meals.
• Utilities such as electricity and gas, which fluctuate with the level of production activity in the facilities.
• Packaging costs, which include the materials used to package the ready meals for consumers, varying as production levels change.

Answer 2

See below

Step-by-step explanation:

Variable costs are business expenses that vary with the production volume. An increase in output increases variable costs.

Examples of variable costs for a manufacturer of supermarket ready meals will include

1. Raw materials used to produce meals such as food ingredients and cooking oil.
2. Transportation and distribution costs incurred in ferrying the meals to the supermarket.
3. Packaging materials used into pack or wrap means as they get delivered.
4. Marketing costs such as sales promotions and merchandising expenses in the supermarket