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nlexa [21]
2 years ago
7

A business manager finds that the building expense each month is completely uncorrelated with revenue levels. What should the bu

siness manager assume about this cost?
Business
1 answer:
Westkost [7]2 years ago
3 0

Answer:

The business manager should assume that the building expense is fixed.

Explanation:

Fixed costs are not correlated with the revenue levels.  Within the relevant range, fixed costs remain constant.  They do not vary with the activity levels as variable costs do.  For example, a manufacturer must pay for rent, repairs and maintenance, and utility bills irrespective of the revenue levels at which it is operating.  This is why the business manager always discovers that the building expense each month does not correlate with the revenue levels, unlike the product's variable costs.

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This is one of the lesson from the activity. That, loans and debts are important part of life of someone but the most important thing, is to remember to clear off those loans and debts. this could be done through the gradual payment till all the debts are cleared.

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<u>Answer:</u> Option 1 and Option 5

<u>Explanation:</u>

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