Question

Q1 Briefly explain fixed and variable holding costs with atleast two examples of each. [10
Marks]​

Answer 1

Explanation:

Fixed costs are time-related they remain constant for a period of time. Variable costs are volume-related and change with the changes in output level. Depreciation, interest paid on capital, rent, salary, property taxes, insurance premium, etc. Commission on sales, credit card fees, wages of part-time staff, etc.