ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

DEFINITION OF ENTREPRENEURSHIP

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is NOT a fixed cost?
A
rent
B
insurance
C
salaries
D
commissions
Explanation: 

Detailed explanation-1: -Option (d) sales commission expense is the correct answer because it is not the fixed cost it is the variable cost.

Detailed explanation-2: -Fixed cost is often called overhead. Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.

Detailed explanation-3: -Answer and Explanation: The sales commission cost is a variable cost as the amount varies proportionately with the number of units sold for a product, which in turn governs the production volume as well.

Detailed explanation-4: -Examples of variable costs include raw materials, labor, utilities, commission, or distribution costs.

Detailed explanation-5: -Rent. Telephone and internet costs. Insurance. Employee Salaries. Loan Payments.

There is 1 question to complete.