Question

Classify the following as fixed cost or variable cost : 2

(a) Rent on factory building

(b) Expenditure incurred on raw material

(c) Property taxes

(d) Interest on borrowed capital

Answer 1

Heya....

Fixed cost r the cost incurred on fixed factors....

Variable cost r the cost incurred on variable factors....

See here your answer...

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a ) Rent on factory building ...
FIXED COST...
becz rent is given also when production is zero...

B ) Expenditure on raw material...
VARIABLE COST...
becz raw material is a variable factor...

C ) Property taxes...
FIXED COST...
becz,, these r compulsory to give even no production is going on...

D ) Intrest on borrowed capital...
FIXED COST...
becz,, it is permanent to give...

-- Be Brainly...

Answer 2

Expenditure on raw material is your answer because it is a variable cost.