Final answer:
The additional labor cost of hiring a new cook due to increased volume from a new residence hall is a variable cost, as it varies with the level of output or the number of students served.
Step-by-step explanation:
The cost associated with hiring a new cook in anticipation of an increase in volume due to the opening of a new residence hall is best described as a variable cost. Variable costs are costs that vary with the level of output. In the context of a dining hall, labor is typically considered a variable input, as the number of cooks or work hours would increase with the quantity of food required to serve more students.
In more practical terms, if the dining hall serves more students, it will require more labor to prepare the increased amount of food, which in turn increases the labor costs proportionally. Thus, these costs of labor are not fixed and will fluctuate based on the number of students served. This kind of cost is in contrast to fixed costs such as rent, equipment, or insurance, which remain constant regardless of the dining hall's output.The additional labor cost of hiring a new cook in anticipation of an increase in volume due to the opening of a new residence hall is best described as variable costs. Variable costs are costs that increase or decrease with the level of output or production. In this case, as the volume of students increases, more labor will be needed, resulting in higher variable costs.