?
The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost?
Answer & Solution
Correct Answer:
Option
C
Depreciation on machines owing to time is considered as fixed cost. Depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset. Depreciation cannot be considered a variable cost, since it does not vary with activity volume. However, there is an exception.
Join the Discussion
Login to post a comment or share your explanation.
Login