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Question
Amount spent to purchase a machinery is the example of ______ cost.
Options
Variable
Fixed
Prime
None of these
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Solution
Amount spent to purchase a machinery is the example of Fixed cost.
Explanation:
The amount spent to purchase machinery is considered a fixed cost because it is a one-time investment that remains constant regardless of production levels. It does not vary with the volume of goods or services produced.
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RELATED QUESTIONS
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