Which expense can be classified as a variable expense?

Variable expenses are costs that fluctuate based on a particular activity or level of production, often related to usage or consumption metrics. In the context of the provided choices, costs that depend on property size and condition fit this definition. For instance, maintenance or repair expenses can vary significantly depending on the size and condition of the property; larger properties may incur higher maintenance costs, while properties in worse condition may require more repairs. This makes them directly linked to the operational realities of managing property.

In contrast, a consistent cost, regardless of conditions, would be a fixed expense because it remains constant regardless of the level of activity. Losses from property vacancies might suggest some variability, but they are not classified as a variable expense in the traditional sense; they are more indicative of potential income loss rather than a direct cost associated with operations. Finally, a legally void contract does not pertain to expense classification and thus falls outside the realm of variable expenses entirely. The designation of costs that are contingent on property size and condition highlights the core characteristic of variable expenses effectively.