wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A businesss telephone bill should normally be classified into which one of the following categories?

A
Fixed cost
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Stepped fixed cost
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Semi-variable cost
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Variable cost
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B Semi-variable cost
Semi -variable cost is a combination of fixed cost and variable cost. Up to a certain level the cost is fixed and thereafter it increases with the volume.

Telephone bills typically having a fixed rental and certain free calls, thereafter every call is chargeable. Hence this is an example of semi-variable cost.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Financial Statements
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon