Question

Choose all that would be considered variable expenses: Group of answer choices Utilities Inventory Wages/labor cost Rent/ Mortgage Internet Packaging

Answer 1

The options that would be considered variable expenses include:

• Wages/labor cost
• Packaging
• Internet
• Utilities

What are the variable expenses ?

As you use more electricity, water, or gas, your utility bills increase. Similarly, as you use more internet data or packaging materials, your expenses for those increase.

Inventory can be a variable expense if it fluctuates with production or sales. However, it can also be a fixed expense if it's maintained at a constant level.

Rent or mortgage payments are typically fixed costs, as they are contracted agreements with a predetermined monthly or yearly payment regardless of activity levels.