Multiple choice

'Telephone charges' is an example of

  1. fixed cost

  2. semi-fixed cost

  3. variable cost

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 Telephone charges is an example of semi-fixed or semi-variable cost, as it is partially fixed and partially variable. The rent paid of phone s a fixed cost, but the charges for calls made is a variable cost. Variable cost increases with increase in number of calls.

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