Asked by Asjid _ Shaykh on Sep 23, 2024
Verified
For a trucking company,all of the following are examples of fixed costs,except
A) Tax accountant fees
B) Package designing fees
C) Insurance
D) Gasoline costs
Gasoline Costs
Expenses related to the purchase of gasoline, often significant for individuals and businesses relying on transportation.
Fixed Costs
Fixed costs, which are unaffected by the volume of production or sales, encompassing charges like lease payments, employee salaries, and insurance fees.
Insurance
A financial product sold by insurance companies to safeguard against the risk of financial loss.
- Identify examples of fixed, variable, and sunk costs in various business scenarios.
Verified Answer
BG
Babbu Gandhi4 days ago
Final Answer :
D
Explanation :
Gasoline costs are a variable cost, as they vary depending on the distance travelled by the truck. Fixed costs are typically expenses that do not vary with changes in the amount of goods or services produced or sold, such as taxes, insurance, and certain fees. Package designing fees could potentially be a fixed cost if they are a one-time expense, but without more information it is impossible to determine.
Learning Objectives
- Identify examples of fixed, variable, and sunk costs in various business scenarios.