ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Variable costs
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Total costs
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Fixed costs
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Average costs
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Detailed explanation-1: -The depreciation expense associated with a company’s buildings and machinery is considered to be a fixed cost or a fixed expense.
Detailed explanation-2: -Cost of machinery and equipment: If the equipment is intended for long-term use, this type of asset would be considered a fixed cost.
Detailed explanation-3: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs.
Detailed explanation-4: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).