Question

Fixed expenses are defined as those that do not very with changed in volume. Examples include:

A( direct staffing costs
B( lease costs and taxes
C( utilities and supplies utilized in production of service or product
D( utilities, rent, lease, depreciation

Answer 1

B (lease costs and taxes) and D (utilities, rent, lease, depreciation) are examples of fixed expenses as they typically do not vary with changes in volume.

Direct staffing costs (A) and utilities and supplies utilized in the production of service or product (C) are generally considered variable expenses as they tend to vary based on the volume of production or sales. For example, if a business produces more goods or provides more services, it will typically need to hire more staff and use more supplies, leading to an increase in expenses.

Explanation: