Which of the following is not included in the variable cost of production ?
Interest on fixed capital has to be paid whatever the level of output, so it is a fixed cost. Excise duty, transportation cost and wages generally vary with the volume of…
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Which of the following is not included in the variable cost of production ?
Answer and explanation
Correct answer C
Interest on fixed capital has to be paid whatever the level of output, so it is a fixed cost. Excise duty, transportation cost and wages generally vary with the volume of output and are treated as variable costs.
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RPSC School Lecturer (School Education)