Imagine you're planning an after-symphony fund-raising party,and you need a life-size grand piano cake.Or you are a developer proposing a new shopping centre to a group of investors,and you want to serve a cake shaped like an architectural rendition of the centre.Is this impossible? No,you just need to contact Cecilia Villaveces Cakes.She actually built a life-size grand piano cake for a gala in Toronto.You can expect to pay anywhere from $75 to $10,000 for one of Cecilia's creations,depending on complexity of design and size.She uses only the best ingredients,and no two cakes are ever quite alike.
-Refer to Specialty Cakes.Which of the following is the BEST example of a fixed cost for Cecilia Villaveces Cakes?

Question

Quizplus · Accepted Answer

Food preparation licences would be considered a fixed cost as it is a necessary expense for operating the business and is not directly related to the number of cakes produced or sold. Delivery costs, part-time employees and electricity consumption would be considered variable costs as they can fluctuate based on the number of orders or amount of production needed.

Imagine You're Planning an After-Symphony Fund-Raising Party,and You Need a Life-Size