[amp_mcq option1=”Cost of cloth” option2=”Piece wages paid to workers” option3=”Depreciation on machines owing to time” option4=”Cost of electricity for running machines” correct=”option3″]<\/p>\n
The correct answer is C. Depreciation on machines owing to time.<\/p>\n
Fixed costs are costs that do not change with the level of production. They are typically costs that are incurred regardless of whether the company produces anything or not. Depreciation on machines is a fixed cost because it is a cost that is incurred regardless of how many machines are used or how much is produced.<\/p>\n
The other options are not fixed costs. The cost of cloth is a variable cost because it changes with the level of production. The piece wages paid to workers are a variable cost because they change with the number of workers employed and the number of hours worked. The cost of electricity for running machines is a variable cost because it changes with the amount of electricity used.<\/p>\n
In conclusion, the correct answer is C. Depreciation on machines owing to time.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Cost of cloth” option2=”Piece wages paid to workers” option3=”Depreciation on machines owing to time” option4=”Cost of electricity for running machines” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-53578","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n