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Which of the following is NOT a fixed cost?

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Question

Which of the following is NOT a fixed cost?

Options

  • Lease costs

  • Loan repayments

  • Rent

  • Sales commission

MCQ
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Solution

Sales commission

Explanation:

Sales commission is paid based on the amount of sales made. It increases or decreases with sales, so it is not a fixed cost.

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Chapter 8: Fundamental Concepts of Cost - EXERCISES [Page 151]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
EXERCISES | Q 36. | Page 151
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