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This question belongs to Commerce Economics
Economics
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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.
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