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Distinguish between fixed costs and variablecosts. Give two examples of each. |
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Fixed Cost is definite; it will incur <a href="https://interviewquestions.tuteehub.com/tag/even-976335" style="font-weight:bold;" target="_blank" title="Click to know more about EVEN">EVEN</a> when there is no <a href="https://interviewquestions.tuteehub.com/tag/units-1438468" style="font-weight:bold;" target="_blank" title="Click to know more about UNITS">UNITS</a> are produced.On the other hand, variable cost remains constant in per unit. Examples of fixed cost are <a href="https://interviewquestions.tuteehub.com/tag/rent-1184968" style="font-weight:bold;" target="_blank" title="Click to know more about RENT">RENT</a>, tax, etc. Examples of variable cost are packing expenses, material <a href="https://interviewquestions.tuteehub.com/tag/consumed-2540963" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMED">CONSUMED</a>, etc.</body></html> | |