Which of the following expenses is a part of the ‘fixed cost’ in the production of surgical garments?

Question

Question

This question was previously asked in

RRB Group D 29 Aug 2022 Shift 3 Official Paper

Answer 1

The correct answer is 'Workers' salary'.

Key Points

A fixed cost is a cost that does not change with an increase or decrease in the number of goods or services produced or sold.
- Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.
- In general, companies can have two types of costs, fixed costs or variable costs, which together result in their total costs. Shutdown points tend to be applied to reduce fixed costs.
- Workers' salary is an example of Fixed cost.
Variable costs are directly related to the level of production.
Waste disposal, Electricity, and Water are examples of variable costs.