Question
1. When there is no activity (zero output) the fixed cost is A) More than zero. B) Zero. C) Negative. D) Positive. 2. Which one
1. When there is no activity (zero output) the fixed cost is
A) More than zero.
B) Zero.
C) Negative.
D) Positive.
2. Which one out of the following is not counted as fixed cost?
A) Cost of rent.
B) Cost of insurance.
C) Cost of advertising.
D) Cost of raw materials.
3. Which one out of the following is not counted as variable cost?
A) Cost of raw materials.
B) Direct labour cost.
C) Energy cost.
D) Cost of rent.
4. Total variable cost
A) Remains same with increase in level of output.
B) Varies with increase in level of output.
C) First increase then decreases as level of output increases.
D) First decrease then increase as level of output increases.
5. Sunk cost is defined as
A) Amount incurred in the future.
B) Amount incurred in the past.
C) Amount incurred at present.
D) No amount incurred.
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