Answered

Which of the following are examples of fixed costs? (Select three answers.)

Packaging and shipping a product
A computer for recording customer and order information
A monthly fee for a flea market booth
Fuel for driving to customers' homes
Hourly labor
A radio ad

Answer :

Samawati

Answer:

Explanation:

Fixed costs are the cost expected to remain constant over a period. These costs do not change regardless of the level of production. Fixed costs are unlike variable expenses that vary with production volume.

From the list provides fixed costs will include

1). A computer for recording customer and order information

The cost of the computer will remain the same throughout the financial period under review. Once the computer is bought, the firm is likely not to incur other costs apart from maintenance, which is captured in other accounts.

2). A monthly fee for a flea market booth

The monthly fee is most probably a constant fee though out the period. It is the equivalent of rent for the market booth. The fee is not dependent on the level of the output.

3). A radio ad

A radio ad is a form of advertisement. The cost will not change whether output increases or decreases.

The examples of the fixed costs among the given options are:

  • A computer for recording customer and order information
  • A monthly fee for a flea market booth
  • A radio ad

Fixed costs, also known as indirect costs or overhead costs in accounting and economics, are business expenses that are not affected by the number of goods or services produced.

Interest or monthly rent payments are examples of recurring expenses. These are usually capital costs as well.

  • A computer for recording customer and order information-- A customer account record that is also also known as a customer record utmost contains important information about a customer.

It can be their name, order data, billing information, interaction data, and credit information.

  • A monthly fee for a flea market booth--  They're low-maintenance because most are staffed by the owners, which means you don't have to stay at your booth when it's open as a vendor.

Having a booth at a flea market can be a great way to supplement your income. When selling at flea markets, the rent is relatively low, depending on your local market.

  • A radio ad-- Purchasing radio advertisements to promote goods or services is known as radio advertising.

Advertisers pay advertising radio stations for airtime, and the radio station in turn telecasts the advertiser's advertisement to its listeners.

Therefore, the correct options are second, third, and sixth sentences.

To know more about the fixed cost, refer to the link below:

https://brainly.com/question/3636923

Other Questions