Bracewell Animations Limited produces animated advertizing films.The list below shows some of the costs that it incurs:
A.Rental of studio space
B. Depreciation of photographic equipment
C. Salaries of animation experts
Which of the costs can be regarded as variable in nature?

Question

Bracewell Animations Limited produces animated advertizing films.The list below shows some of the costs that it incurs: 
A.Rental of studio space
B. Depreciation of photographic equipment
C. Salaries of animation experts
Which of the costs can be regarded as variable in nature?

Quizplus · Accepted Answer

All the listed costs (rental of studio space, depreciation of photographic equipment, and salaries of animation experts) are fixed in nature, not variable. Fixed costs do not change with the level of production or business activity within a certain range.

Bracewell Animations Limited Produces Animated Advertizing Films