COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Identify three fixed costs in the production of a furniture
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Electricity
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wood
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Salaries
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Insurance
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nails and screw
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Explanation:
Detailed explanation-1: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.
Detailed explanation-2: -Fixed expenses might include: Lease or a mortgage. Other capital expenses, like the cost of buying business assets-equipment, vehicles, furniture.
Detailed explanation-3: -Fixed costs may include lease and rental payments, insurance, and interest payments.
Detailed explanation-4: -Fixed costs are costs that do not change when sales or production volumes increase or decrease. This is because they are not directly associated with manufacturing a product or delivering a service. As a result, fixed costs are considered to be indirect costs.
There is 1 question to complete.