Which of the following is most likely to be a variable cost for a firm ?

A. The franchiser’s fee that a restaurant must pay to the national restaurant chain
B. The payroll taxes that are paid on employee wages.
C. The monthly rent on office space that it leased for a year
D. The interest payments made on loans.

Correct Answer: The payroll taxes that are paid on employee wages. ✔

Last Updated: June 18, 2019