Question

Classify the following into fixed costs and variable costs :

(i) Salary of the permanent staff

(ii) Interest payment

(iii) Wages to daily workers

(iv) Expenditure on raw materials

(v) Excise duty

(vi) Sales tax

Answer 1

Fixed Costs: salary of permanent staff, interest payment

Variable Costs: wages to daily workers, expenditure on raw materials, excise duty, sales tax