Question

Which of the following expenses is not a variable cost?

a.
sales commission
b.
hourly wages
c.
rent
d.
materials

Answer 1

It should be materials, everything else is at a rate, and although rent can change, material value is more likely to change on a given day compared to rent. Think of gas for example which is a material, the price is different every day.

Answer 2

It’s rent because variables are related to the sales volume of your business