Total cost in the short run is classified into fixed costs and variable costs. Which one of the following is a variable cost?
A. Cost of raw materials.
B. Cost of equipment.
C. Interest payment on past borrowings.
D. Payment of rent on building.
Answer:A
Total cost in the short run is classified into fixed costs and variable costs. Which one of the following is a variable cost?
A. Cost of raw materials. B. Cost of equipment. C. Interest payment on past borrowings. D. Payment of rent on building.