Which are examples of variable costs?

• A. Supplies, Utilities, Contractors, PRN Staff, Repairs, Maintenance, Advertising, Marketing, Vehicles, Travel, Accounting, and Legal Services
• B. Salaries and Benefits
• C. Mortgage
• D. Insurance

Answer: (A)

Variable costs change in direct relation to the level of activity or service volume. The items listed as examples are typically those that rise or fall with how much work you do or how intensively you operate: you use more supplies as demand grows, utilities can increase with usage, you bring in contractors or PRN staff to handle peak periods, maintenance and repairs vary with how much you’re operating, advertising and marketing budgets can scale with campaigns, vehicles and travel depend on travel needs, and professional services like accounting and legal adjust with workload.

Mortgages and insurance are generally fixed costs—they don’t swing with day-to-day service volume in the short term, and salaries and benefits are typically fixed payroll costs, though they can vary in different contexts.