During sporting events at the local high school,Megan runs a concession stand.The costs associated with the purchase of hot dogs,mustard,relish,ketchup,chips,sodas,paper napkins,and cups are all examples of what type of costs?
A) fixed
B) variable
C) liquidity
D) promotional

Question

Quizplus · Accepted Answer

The costs associated with the purchase of hot dogs, mustard, relish, ketchup, chips, sodas, paper napkins, and cups will vary depending on the number of customers and amount of product sold, making them variable costs. Fixed costs, on the other hand, are costs that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance. Liquidity costs are related to the ability of a business to meet its financial obligations, and promotional costs refer to expenses incurred to advertise or promote a product or service.

During Sporting Events at the Local High School,Megan Runs a Concession