Which of the following expenses is most likely considered a variable cost for a business?

Show Answers

The licensing fee a restaurant pays to the national chain it belongs toPayroll taxes calculated based on employee salariesThe fixed monthly lease payment for office premisesLoan interest charges incurred by the company

Explanation

Variable costs fluctuate with production levels or business activity. Payroll taxes, which are based on employee wages, vary as the number of hours worked or employees changes, making them a variable cost. In contrast, franchiser fees, fixed rent payments, and loan interest are generally fixed expenses that do not change with production volume.