Which of the following is a variable cost in the short run ?
Correct answer: B. wages paid to factory labor
- A. rent on the factory
- B. wages paid to factory labor
- C. interest payments on borrowed financial capital
- D. payments on the lease for factory equipment
- E. salaries paid to upper management
Explanation
Factory labour wages usually vary with the quantity produced or hours worked, making them a variable cost in the short run. Rent, equipment leases, and similar obligations are normally fixed during that period.
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