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

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

A.           Cost of raw materials             

B.            Cost of equipment

C.            Interest payment on past borrowing

D.           Payment of rent on buildings

Answer: Cost of raw materials

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