A beach resort in Bali builds 24 villas with private pools. They also establish two restaurants using state-of-the-art equipment (such as multipurpose ovens, freezers, and food processors). Meals are prepared using organic, locally sourced vegetables and meat. The hotel also uses water from the town supplier. Based on this scenario, what are the fixed costs for the beach resort?

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the amount of goods or services produced by the business. The construction of the villas is a one-time expense that does not vary with the resort's occupancy or the number of meals served, making it a fixed cost.

A Beach Resort in Bali Builds 24 Villas with Private