My Learning Cart
?
Categories
Account

In a case study, a company incurs $10,000 in rent for its factory. This cost is

₹0.0
Login to Download
  • 📥 Instant PDF Download
  • ♾ Lifetime Access
  • 🛡 Secure & Original Content

What’s inside this PDF?

Question: In a case study, a company incurs $10,000 in rent for its factory. This cost is classified as:

Options:

  1. Variable Cost
  2. Fixed Cost
  3. Direct Cost
  4. Indirect Cost

Correct Answer: Fixed Cost

Solution: 

Rent for the factory is a fixed cost as it does not change with the level of production.

In a case study, a company incurs $10,000 in rent for its factory. This cost is

Practice Questions

Q1
In a case study, a company incurs $10,000 in rent for its factory. This cost is classified as:
  1. Variable Cost
  2. Fixed Cost
  3. Direct Cost
  4. Indirect Cost

Questions & Step-by-Step Solutions

In a case study, a company incurs $10,000 in rent for its factory. This cost is classified as:
  • Step 1: Understand the Cost - The company has a cost of $10,000 for rent.
  • Step 2: Identify the Type of Cost - Costs can be fixed or variable.
  • Step 3: Analyze the Rent Cost - Rent does not change with production levels.
  • Step 4: Conclusion - Rent for the factory is a fixed cost.
  • Fixed Costs – Costs that do not vary with the level of production or sales, such as rent.
  • Variable Costs – Costs that change with the level of production, such as raw materials.
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely
Home Practice Performance eBooks