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Which is a correct example of a fixed cost?

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Answer and explanation

Correct answer: दुकान का मासिक किराया

A fixed cost generally remains unchanged in total for a relevant period even when output or sales change within a normal range. Monthly shop rent is a common example because the contractual amount usually does not vary with the number of units sold. Raw material, per-item packaging, and per-item delivery normally increase with activity and are therefore variable costs.

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fixed-costcostingConceptnature and importance of business financeconcept nature and importance of business financeSources of Business FinanceBusiness StudiesClass 11 MCQ

Frequently asked questions

What is the correct answer to this question?

दुकान का मासिक किराया

Why is this the correct answer?

A fixed cost generally remains unchanged in total for a relevant period even when output or sales change within a normal range. Monthly shop rent is a common example because the contractual amount usually does not vary with the number of units sold. Raw material, per-item packaging, and per-item delivery normally increase with activity and are therefore variable costs.

Which subject and chapter does this question cover?

This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.

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