Which of the following is not true for the variable cost?ans.Costs like insurance, license fees, etc are example of variable costEconomic of scale greatly effects variable costInitially with increase in production variable cost per quantity reduces but beyond some point it increases sharplyVariable cost is zero when output quantity is zero Previous Marked for Review Next
Question
Which of the following is not true for the variable cost?ans.Costs like insurance, license fees, etc are example of variable costEconomic of scale greatly effects variable costInitially with increase in production variable cost per quantity reduces but beyond some point it increases sharplyVariable cost is zero when output quantity is zero Previous Marked for Review Next
Solution
The statement that is not true for variable cost is: "Costs like insurance, license fees, etc are examples of variable cost".
Variable costs are costs that change in proportion to the good or service that a business produces. They include inputs like labor and raw materials. However, costs like insurance and license fees are considered fixed costs, not variable costs, because they do not change with the level of output. These costs are incurred regardless of how much of a good or service is produced.
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