21. When the activity level is measured by the number of products sold, the Cost of Goods Sold in a "merchandising" company would be considered a:

A. Fixed cost

B. Variable cost

C. Step cost

D. Mixed cost

Side Note: I'm a little confused about this question because I would think that the answer is B, variable cost. However, I'm not sure if since it's a company it might still have fixed costs, therefore making the answer mixed cost.