Marcella Operates a Small, but Very Successful Art Gallery

Marcella operates a small, but very successful art gallery. All but one of the following can be classified as a variable cost arising from the physical inputs Marcella requires to operate her business. Which is it?

A) physical space for the gallery
B) costs of purchasing art work to sell in the gallery
C) wages paid to three part-time employees
D) accountant's fees for preparing tax returns

Correct Answer:

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