Which of the following, in a thermal power plant, is not a fixed cost?

April 15, 2024 by rawan239

a variable cost, which means that it changes with the level of production. The more electricity that is produced, the more fuel will be required. Interest on capital is also a variable cost, as it is based on the amount of money that has been borrowed to finance the plant. Depreciation is a non-cash expense that is used to account for the wear and tear on the plant’s assets. Property taxes are a fixed cost that is based on the value of the plant’s assets.

In conclusion, the only option that is not a fixed cost is D. Insurance charges.