Which is an example of a variable cost?

Question

BlackTom AI · Accepted Answer

Variable costs change in direct proportion to the level of activity; fuel consumption rises when more flights or vehicle hours occur and falls when activity decreases. This core distinction between fixed and variable costs determines the correct choice.

1) Relevant knowledge points and concepts
- Variable cost: an expense that increases or decreases with production or activity level (examples: fuel, raw materials, hourly wages tied to output).
- Fixed cost: an expense that remains constant over a relevant range of activity, regardless of output (examples: rent, fixed interest payments, salaried overhead).
- Some costs can be mixed (semi-variable), but the options given are clearly typical examples of fixed vs variable.

2) Step-by-step reasoning
- Examine each answer option and ask: does this cost change when the airline (or business) operates more or fewer flights?
- Option: Rent for corporate headquarters — this payment is typically contractual and due regardless of how many flights occur, so it does not vary with operational activity.
- Option: Fixed interest payments on an aircraft mortgage — “fixed” in the name indicates this is a contractual periodic payment independent of utilization; it does not increase with more flights.
- Option: Fuel — fuel consumption directly increases with each flight, hour flown, or mile traveled; more activity = more fuel burned = higher fuel cost.

3) Intermediate logical steps
- Activity up → fuel used up proportionally → fuel cost rises.
- Activity up → rent & fixed interest remain unchanged → they are fixed costs.

4) Why the correct answer is correct
- Fuel meets the definition of a variable cost because its total amount changes in direct relation to the level of operational activity (flights, hours, distance).

5) Why the other options are incorrect
- Rent for corporate headquarters is a fixed cost (paid regardless of output).
- Fixed interest payments on an aircraft mortgage are contractual fixed payments and do not vary with usage.

6) Conclusion
- Therefore, the correct answer is Fuel, which matches the provided answer.

Which is an example of a variable cost? 单项选择题

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