Question

a) In case of operation of a motor vehicle, the following cost
would be classified as fixed cost : -
i) Insurance
ii) Change of engine oil after every 5,000 kilometers.
iii) Tyre Replacement
iv) Petrol​

Answer 1

insurance is the correct ans.

Answer 2

A correct answer is an option (i) that is insurance.

Features of fixed cost:

• The cost which remains constant with change in the number of products sold and produced
• The fixed cost is the cost that is payable by the company or any business institutions
• It is the type of indirect cost and it does not depend upon the productivity of the company
• It is managed by the business and it is used for contract agreements