Problemas
Which two items are examples of fixed costs for a business?(Choose 2.) A. Rent B. Credit card payments C. Insurance D. Commissions
Roztwór
Domenica
élite · Tutor durante 8 años
4.7
(312 Votos)
Respuesta
A. C.
Explicación
## Step 1Fixed costs are those costs that do not change with the level of output or sales. They remain constant regardless of the business's activity level. ## Step 2In this case, Rent (Option A) and Insurance (Option C) are examples of fixed costs. Rent is a fixed cost because it does not change with the level of output or sales. It remains constant regardless of the business's activity level.## Step 3Similarly, Insurance is also a fixed cost because it does not change with the level of output or sales. It remains constant regardless of the business's activity level.## Step 4On the other hand, Credit card payments (Option B) and Commissions (Option D) are variable costs. They change with the level of output or sales. For example, if a business sells more goods, it will have to pay more in credit card payments and commissions.