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| Q. |
In a poultry unit, the factor most influencing the cost is the cost of – |
| A. | feed |
| B. | transportation |
| C. | chicks |
| D. | medicines |
| Answer» A. feed | |
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Explanation: Feed cost is one of the important variable costs that plays a big role in determining the poultry cost. Variable costs rise and fall with the size of the output and the level of the operation. Fixed costs (for items such as taxes, insurance, interest, and depreciation on buildings and equipment), are incurred whether or not there is any output. |
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