If you operated a small bakery,which of the following would be a variable cost in the short run?

A) Baking ovens.
B) Interest on business loans.
C) Annual lease payment for use of the building.
D) Baking supplies (flour,salt,etc. ) .

Question

Imani Etienne · Accepted Answer

Final Answer : D, Explanation :  Baking supplies are considered variable costs in the short run because they can be adjusted based on the level of production. If the bakery decides to produce more goods, they will need to purchase additional supplies. On the other hand, items such as baking ovens, interest on business loans, and annual lease payments are fixed costs and do not change based on the level of production in the short run.

If you operated a small bakery,which of the following would be a variable cost in the short run?

A) Baking ovens.
B) Interest on business loans.
C) Annual lease payment for use of the building.
D) Baking supplies (flour,salt,etc. ) .

Definitions

Learning Objectives

Learning Objectives

Related questions

If you operated a small bakery,which of the following would be a variable cost in the short run?A) Baking ovens.B) Interest on business loans.C) Annual lease payment for use of the building.D) Baking supplies (flour,salt,etc. ) .

Definitions

Learning Objectives

Learning Objectives

Related questions

If you operated a small bakery,which of the following would be a variable cost in the short run?

A) Baking ovens.
B) Interest on business loans.
C) Annual lease payment for use of the building.
D) Baking supplies (flour,salt,etc. ) .