Question

: Rent, Insurance, Depreciation on Plant, etc are the examples of ___________ .

A  Variable Cost

B  Social Cost

C  Direct Cost

D  Fixed Cost

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Answer 1

Answer:

I think

C) Direct cost

I am not sure

Answer 2

Answer: Option D- Rent, Insurance, Depreciation on Plant, etc are the examples of Fixed Cost.

Explanation:

1. Fixed costs refer to those expenses that a company should have to pay, independent of any kind of specific business activity.

2. Fixed costs are set over a specific time period and do not change with levels of production.

3. Fixed costs can be both direct and indirect and may influence profitability situations at different levels on the income statement.

4. Companies have to pay interests as fixed costs which are the main factors for net income.

5. Cost structure management is an important sub-part of a business organization's analysis that looks at the fixed and variable costs effects on a business.