Question

Which of the following is a characteristic of internal hardware sources?

A. costs are mainly fixed
B. management and staff are provided
C. additional capacity may be available
D. costs are mostly variable

Answer 1

Fixed costs are expenses that do not change regardless of the level of production, while variable costs increase with production. An example of a fixed cost is rent on a factory or retail space. Therefore, the characteristic of internal hardware sources is that costs are mostly fixed.

Step-by-step explanation:

In business, fixed costs are the expenses that do not change regardless of the level of production. These costs are incurred before producing any output and are considered sunk costs. Variable costs, on the other hand, are the costs that increase as the level of production increases.

An example of a fixed cost is the rent on a factory or retail space. Once the lease is signed, the rent amount remains the same regardless of how much is produced. Variable costs, on the other hand, typically show diminishing marginal returns, meaning that the cost of producing higher levels of output increases.

So, in relation to the question, a characteristic of internal hardware sources is that costs are mostly fixed.