Question

Which of the following expenses would be a fixed cost for a party cruise ship?

a. The food that is served on the cruise.
b. The port docking fee.
c. Cocktails that are served in the ship's bars.
d. Dishwashing detergent to wash plates and glasses.

Answer 1

The port docking fee is a fixed cost for a party cruise ship because it is a set charge that does not vary with the number of passengers or the level of consumption onboard. So the correct answer is option b.

Step-by-step explanation:

Among the options provided for a party cruise ship's expenses, the port docking fee would be considered a fixed cost. Fixed costs are consistent expenditures not affected by the level of production or the amount of services provided.

The port docking fee is a set charge that must be paid regardless of the number of passengers on the ship or the amount of food and drink they consume. Therefore, it remains constant and is a fixed cost to the cruise operation.

On the other hand, expenses such as food served (a), cocktails that are served (c), and dishwashing detergent (d) are variable costs. These costs fluctuate with the number of passengers on board and the amount of consumption of these items. The more passengers there are, or the more they consume, the higher these costs will be.

Answer 2

The port docking fee is a fixed cost for a party cruise ship because it remains the same regardless of the number of guests or activities. Other listed expenses, such as food and cocktails, vary with consumption and are therefore variable costs.

Step-by-step explanation:

Out of the options listed, the port docking fee would be considered a fixed cost for a party cruise ship. Fixed costs are expenses that remain constant regardless of the level of production or the quantity of services provided. In the context of a party cruise ship, the port docking fee is a fee that must be paid each time the ship docks at a port, and it does not fluctuate with the number of passengers or the amount of food and drinks consumed onboard.

This fee is a contractual obligation and will remain the same regardless of other activities happening on the ship. Other costs like food served on the cruise (variable cost), cocktails at the ship's bars (variable cost), and dishwashing detergent (variable cost) will vary depending on the consumption and the number of guests.