Asked by patrisha karla amante on Sep 23, 2024
Verified
For a restaurant,all the following are fixed costs,except
A) Space rental
B) Advertising
C) Raw material cost
D) All of the above-they are all variable costs
Fixed Costs
Expenses that do not change with the level of goods or services produced over a short period.
Space Rental
The act of obtaining the use of a physical location or property for a specified period of time in exchange for payment.
Raw Material Cost
The expenditure incurred for the raw ingredients or basic materials that are converted through manufacturing processes into goods or services.
- Recognize instances of fixed, variable, and sunk expenses across different commercial settings.
Verified Answer
LA
Lulwah Abdullahabout 3 hours ago
Final Answer :
C
Explanation :
Fixed costs are expenses that do not vary with the amount of production or sales, and raw material cost is a variable cost that changes with the amount of food prepared or sold. Therefore, only choice C is a variable cost, and the answer is C.
Learning Objectives
- Recognize instances of fixed, variable, and sunk expenses across different commercial settings.