Question

Which of the following indicates fixed cost:

1 point

A. Electricity bill

B. Expenses on raw material

C. Wages of daily workers

D. All of above​

Answer 1

Answer:

Wages of daily workers indicates fixed cost.

Answer 2

The correct answer is option (D.) Interest on capital.

Explanation:

• Interest on fixed capital indicates fixed cost.
• In accounting and economics, fixed costs is also known as indirect costs or overhead costs, refers to the business expenses that are not dependent on the level of goods or services generated or produced by the business.
• They tend to be recurring, such as interest or rents being paid on the monthly basis.
• These costs also tend to become capital costs.