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Classify the following as either fixed or variable costs (1.5 points) A. Meat for a hamburger restaurant Gasoline for a truck
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Answer #1

a) Meat will be classified as variable cost,

b) Gasoline will be variable cost.

c) Depreciation will be fixed cost.

d) Fire insurance will be fixed cost.

e) Shipping charges will be part of variable cost.

f) salaries are variable cost.

Variable cost are those which increases or decreases depending on the functioning of the firm, if they are producing more variable cost will increase, fixed cost are those which the firms have to pay no matter what. if they are functioning or not.

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