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Commerce · Q175

Costing

Graduate and Post Graduate · Commerce · question 175

Q175

Insurance and garage rent is ________.

A.
fixed charges
Answer
B.
maintenance charges
C.
operating charges
D.
running charges

Answer: Option A

Solution

Answer: Option A
Solution:
Insurance and garage rent is fixed charges. A fixed charge is any type of expense that recurs on a regular basis, regardless of the volume of business.