Home / Aptitude Tests / Economics / Rent and administrat...

Rent and administrative expenses are examples of

...

Rent and administrative expenses are examples of

A.

Average fixed costs

B.

Average variable costs

C.

Fixed costs

D.

Variable costs

Correct answer is C

Examples of general and administrative expenses are:

  • Accounting staff wages and benefits.
  • Building rent.
  • Consulting expenses.
  • Corporate management wages and benefits (such as for the chief executive officer and support staff)
  • Depreciation on office equipment.
  • Insurance.
  • Legal staff wages and benefits.
  • Office supplies.

 Fixed costs are those costs that must be incurred in fixed quantity regardless of the level of output produced.