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is electricity bill a fixed cost or a variable cost? defend your answer


subject: entrepreneurship​


Sagot :

Answer:

Utilities. This is the cost of electricity, gas, phones, and so forth. This cost has a variable element, but is largely fixed.

Answer:

It's neither.

The cost of electricity is an indirect cost since it can't be tied back to the product or the specific machine. However, the cost of electricity is a variable cost since electricity usage increases with the number of products that are produced or manufactured.

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