Question
Yogi Farms rents farming land which they use to grow herbal and organic products on.Yogi Farms has agreed on a rental fee of R2000per100m2with the
Yogi Farms rents farming land which they use to grow herbal and organic products on. Yogi Farms has agreed on a rental fee of R 2 000 per 100m2 with the landowner. The landowner’s agreement states that Yogi Farms can use up to 1 000m2 of the property. Based on Yogi’s current production they are only making use of 300m2. What type of cost can the rental expense be defined as?
A. Mixed cost
B. Semi-fixed costs
C. Semi-variable costs
D. Fixed costs
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