For a person who owns and operates an automobile, insurance premiums are a __________ and maintenance and repairs are a __________.
A)revenue; cost
B)fixed cost; fixed cost
C)variable cost; variable cost
D)variable cost; fixed cost
E)fixed cost; variable cost

Question

Quizplus · Accepted Answer

Insurance premiums are a fixed cost because they are typically paid on a regular basis and do not vary based on how much the car is driven or if any accidents occur. Maintenance and repairs, on the other hand, are a variable cost because they can vary greatly based on the condition of the car and any necessary repairs that need to be made.

For a Person Who Owns and Operates an Automobile, Insurance