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Grade: 12th pass

                        

Which of the following is variable cost? A Factory rent. B Supervisor's salary. C Wages of worker. D All of the above.

Which of the following is variable cost?

A

Factory rent.

B

Supervisor's salary.

C

Wages of worker.

D

All of the above.

 

5 months ago

Answers : (1)

ankit singh
askIITians Faculty
614 Points
							
Wages paid to the factory labour are costs that are directly proportional to the level of production. If zero output is being produced then these costs do not have to be incurred. These costs vary with the level of output produced. Therefore, they are classified as variable costs. Fixed costs are indirect costs and have to be paid irrespective of the level of production. Even if zero output is being produced these costs have to be incurred. These costs include rent of the factory and supervisor's salary which is usually negotiated well in advance and must be paid on a contractual basis even if output fluctuates from normal.
5 months ago
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