Question 44
Theory of Costs and RevenueWhich of the following is NOT a part of the fixed costs of a limited liability company?
- A.Interest on loans
- B.Rent on buildings
- C.Depreciation reserves
- D.Management expenditure
- E.Wages.
Show the answer and explanation
Answer: E (Wages.)
Explanation
Wages of production workers change with output, so they are a variable cost; the others are paid whatever the output.