PRC-3 · Chapter 4 · Question 13 of 65
The factory rent for the bakery is Rs. 500,000 per month, regardless of whether they bake 1,000 cakes or 10,000 cakes. The rent is an example of a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Fixed cost
Explanation
Fixed costs remain constant in total regardless of the volume of production or activity within a relevant range.
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