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Q. |
Which of the following is not a fixed cost? |
A. | Salaries of administrative staff |
B. | Rent of factory building |
C. | Property taxes |
D. | Electricity charges |
Answer» A. Salaries of administrative staff | |
Explanation: Fixed costs arc business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as salaries or rents beingpaid per month, and are often referred to as overhead costs. The salaries of administrative staff are variable costs. |
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