vaings Season & Orline FrQuz Chapter 2 Reading Quz x Question 5 Question 6 Quest

Question

vaings Season & Orline FrQuz Chapter 2 Reading Quz x Question 5 Question 6 Question 7 Question 8 D Question 1 1 pts Grades People Anexample of a fixed cost is cost of ofhce rent Time Elapsed: Hid Atempt dm: l 10 at 11:5pm 0 Minutes, 56 Seconds True Chat My Media Media Gallery My Career Purchase Course D Question 2 1 pts An example of a variable cost is the cost of office supplies. Failse Activity Logs Plazza Mahara Canwas to Ban- Question 3 1 pts ner Grade Sunk cost is money that should be considered in your economic analysis Library True

Explanation / Answer

1. True

Fixed cost is a cost which does not depend on how much output is produced. It is independent of output. Rent is also fixed it remains the same irrespective of output produced.

2. False

Office supplies is a fixed cost. Office supplies like pen, stapler, notebooks are necessary items for running the business. Its requirement does not differ with output.

3. False

Sunk costs are costs that cannot be recovered. It is one time payment and has effect on future cash flows and thus should not be considered in economic analysis.

4. True

Recurring costs are costs which are incurred on regular basis over a period of time. Cost of insurance is also incurred at a regular interval.

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