INTRODUCTION TO ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
The fixed costs of a business:
|
|
vary based on the season
|
|
|
do not vary based on the units sold by the enterprise
|
|
|
do not vary except when the enterprise increases sales volumes
|
|
|
must exceed variable costs
|
Explanation:
Detailed explanation-1: -Variable costs are any expenses that change based on how much a company produces and sells. This means that variable costs increase as production rises and decrease as production falls. Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials.
Detailed explanation-2: -Fixed costs do not change based on activity. The cost will stay the same in total as long as activity is within the relevant range. Because fixed costs are fixed in total, the per unit rate will change as production changes.
There is 1 question to complete.