Fixed and Variable CostsOnline version Test your knowledge about fixed and variable costs! by sarah ayyad 1 Electricity bills are variable costs. Yes No 2 Insurance premiums are considered fixed costs. Yes No 3 Insurance premiums are considered variable costs. Yes No 4 Raw materials are considered fixed costs. Yes No 5 Fixed costs change with the level of production. Yes No 6 Rent is an example of a fixed cost. Yes No 7 Direct labor is an example of a fixed cost. Yes No 8 Rent is an example of a variable cost. Yes No 9 Variable costs change in direct proportion to the level of production. Yes No 10 Electricity bills are fixed costs. Yes No 11 Depreciation of equipment is a variable cost. Yes No 12 Fixed costs remain constant regardless of the level of production. Yes No 13 Property taxes are variable costs. Yes No 14 Depreciation of equipment is a fixed cost. Yes No 15 Sales commissions are considered fixed costs. Yes No 16 Property taxes are fixed costs. Yes No 17 Sales commissions are considered variable costs. Yes No 18 Direct labor is an example of a variable cost. Yes No 19 Variable costs remain constant regardless of the level of production. Yes No 20 Raw materials are considered variable costs. Yes No
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