Question

What are the fixed and variable cost in a bakery shop?

Answer 1

Variable Cost:
1. Ingredients (Flour, butter, sugar,etc.,)
2. Supplies and Packaging Materials
3. Payroll ( If employees paid by their production basis)
4. Electricity
5. Other Variable Cost

Fixed Cost:
1. Rent
2. Depreciation ( Mixers, Ovens, Furniture, etc)
3. Salary