Question

List 10 possible costs in owning and running a tennis shoe factory. Identify whether each cost is fixed or variable. These do not have to be in complete sentences. You can even use my first two examples if you'd like.
Ex.


1. Shoe laces - variable


2. Salaried workers - fixed

Answer 1

Answer:

The 10 possible costs in owning and running a tennis shoes factory are:

1) Rent - fixed , 2) electricity and other utility bills - fixed, 3) salaries of workers- fixed, 3) Shoe laces- variable, 4) cost of leather - variable, 5) cost of rubber -variable, 6) synthetics used in shoes - variables cost 7) depreciation on tools and machinery - fixed, 7) cost of fabric used in shoemaking - variable, 8) Advertising cost - fixed 9) Insurance - fixed. 10) cost of plastic foam - variable.

Explanation:

Fixed cost are the expenses that do not vary with the changes in the level of output within a period of time. It remains the same and fixed.

Whereas, variable costs are the expenses which keeps on changing with the change in level of output produced. They are flexible and keeps on changing depending upon the level of output.