Which of the Following Is a Variable Cost?

Salary of permanent staff

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licence fees

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rent of premises

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wages

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Solution

The correct option is D
wages

Answer: d) Wages
Wages are variable costs in a firm, as the number of employees required will vary based on the demand for production, therefore the wages paid to the total number of employees will vary with the number of employees.
Also read:
How to Calculate Total Variable Cost
Fixed Cost Vs Variable Cost
Average Variable Costs Formula
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