Al has opened a auto repair shop .The monthly payment on the tools he recently purchased,the rent on his business location,and his business license are all examples of _____ costs.
A) marginal
B) variable
C) fixed
D) promotional
E) demand

Question

Quizplus · Accepted Answer

Fixed costs are expenses that remain constant regardless of the level of sales or production. The monthly payments on the tools, rent, and business license are all fixed expenses for Al's auto repair shop. Marginal costs refer to the cost of producing one additional unit, variable costs are expenses that vary with the level of sales or production, promotional costs are expenses related to advertising and marketing, and demand costs are not a recognized term in accounting or economics.

Al Has Opened a Auto Repair Shop