INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Cost that go up and down
|
|
|
Cost that remain the same
|
|
|
Measure the disadvantages of production
|
|
|
Measure advantages of production
|
Detailed explanation-1: -Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.
Detailed explanation-2: -Fixed costs are costs that remain the same despite the volume of goods or services produced. Variable costs vary proportionally with the volume of goods or services provided.
Detailed explanation-3: -Fixed cost = Total cost of production-(Variable cost per unit x number of units produced)
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.
Detailed explanation-5: -Fixed costs remain constant regardless of the level of output because they are operating expenses for a firm but they are not dependent on the activity of the firm. In addition, fixed expenses do not change so often. For example, monthly rent paid by the business.