INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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rent
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insurance
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salaries
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commissions
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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.