PGP Company wants to start an employee appreciation program. They have started d

Question

PGP Company wants to start an employee appreciation program. They have started discussions regarding centering this program around a local minor league baseball team. PGP Company can buy a season pass for a box at the field for $10,000. The company would be served cold refreshments and the usual tasty baseball field treats. These food and drink items would be charged to PGP Company based on the amount consumed at each game. Which of the following costs would be considered a variable cost?

Explanation / Answer

The cost of purchasing the food and drink items would be considered a variable cost as it is based on actual amount consumed at each game.

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