Question 12
MediumOriginal questionMatch each cost with its type for a small bakery in the short run.
| List I | List II |
|---|---|
| A. Flour | I. Fixed cost (rent) |
| B. Monthly rent of the shop | II. Fixed cost (interest) |
| C. Gas for the ovens | III. Variable cost (an ingredient) |
| D. Interest on the loan for the ovens | IV. Variable cost (fuel used per batch) |
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Flour and gas rise with the number of loaves: variable.
Rent and loan interest are paid whatever is baked: fixed.
- Concept
- Classifying costs
- Typical timeTypical
- 90 s
- Your timeYours
- —
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