COST ACCOUNTING
FINANCIAL TERMINOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which is not a fixed cost
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Rent
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Business Rates
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Insurance
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Premises
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Heating and lighting
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Explanation:
Detailed explanation-1: -Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.
Detailed explanation-2: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.
Detailed explanation-3: -Examples of fixed costs in hotels include: Payroll-related expenses. Rent or mortgage. Property taxes.
Detailed explanation-4: -Solution(By Examveda Team) Fixed cost is a cost which do not change in total during a given period despite changes in output.
There is 1 question to complete.