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Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost?

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Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost?

A).  Cost of raw material

B).  Cost of equipment

C).  Interest payment on past borrowing

D).  Payment of rent on buildings


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Answered by on | Votes 0 |

 Cost of raw material



Total costs in the short-term are classified into fixed costs and variable costs. Cost of raw material is a variable cost. Variable costs vary based on the amount of output, while fixed costs are the same regardless of production output.

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