Question

Assume that you are an enterprenever of a hotel what are the fixed and variable cost to be carried out in that business​

Answer 1

Answer:

Fixed cost are predetermined expenses that do not vary with output or how the business is performing.

some examples of fixed costs to be carried out in a hotel include:-

.Rent

.Telephone and internet costs

.Insurance

.Employee salaries

.Loan payments

.License

Variable costs changes over a specified period and are based on the business performance and the volume of services the business generates.

Some examples of variable costs to be carried out in a hotel include:

.Commissions

.Taxes

.Hourly wages

.Food

.water and electricity utilities

.Transport and delivery